Freedom of enterprise is a characteristic that is common to most economic systems. in a market system means that entrepreneurs can obtain and use economic resources without any legal restraint. allows businesses, within broad limits, to choose what goods to produce. refers primarily to the right of consumers to purchase what they want.

The graph below is for a firm with market power. Place point A at the firm's output and price combination. Place point B at the firm's output and price combination if the government wanted to regulate it and set a price ceiling to restrain its market power and have it produce at the level of a perfectly competitive firm. Then answer the questions.

Macmillan Learning Please match the five forces that shape competition and profitability with each description. Firms must buy the inputs for a good. Others are attracted by potential economic profit. Dividing market share can cause pressure on price. Other goods could be used in place of this good. Can customers influence the price they pay for the good? Answer Bank threat from potential entrants competition from existing firms bargaining power of buyers competition from substitute goods bargaining power of suppliers

Fill in the table by the main characteristics of the competitive markets. Criteria: Pure and perfect competition Imperfect competition Monopolistic competition Oligopoly Monopoly Number of sellers Number of buyers Type of the commodity Price control Barriers of entry to the market Access to the market information Examples of real production markets

Three natural barriers to entry are control of resources, patents and copyright law, and licensing. problems in raising capital, patents and copyright law, and licensing. control of resources, patents and copyright law, and economies of scale. economies of scale, problems in raising capital, and control of resources. control of resources, economies of scale, and licensing.

Which of the following is not an example of an entry barrier? Group of answer choices Capital needed to start business. Government licensing or franchising. Low production costs. Strong brand recognition. All of the above are barriers to entry.