There are many stock markets around the world, with 18 internationally referenced exchanges and many other local and commodity-based exchanges. For example, there are approximately 2300 listed companies on the New York Stock Exchange as of July 6, 2011.
Business economists work in such areas as manufacturing, mining, transportation, communications, banking, insurance, retailing, private industry, securities and investment firms, management consulting firms, and economic and market research firms,
There are only normal profits in the market, so no firms will enter or exit the market.
Firms may continue operating despite not breaking even due to several reasons, such as covering fixed costs while waiting for market conditions to improve or to maintain market presence. They may also be investing in long-term growth, sacrificing short-term profits for future profitability. Additionally, companies might have access to sufficient capital reserves or financing that allows them to sustain operations until they can achieve profitability.
The Stock Market Section
Q-theory, primarily developed by economist James Tobin, is used to analyze investment decisions by comparing the market value of a firm to the replacement cost of its assets. The "q" ratio, defined as the market value divided by the asset replacement cost, informs whether firms should invest in new capital. A q ratio greater than one suggests that market values are high relative to costs, incentivizing firms to invest, while a ratio below one indicates that investment may not be warranted. This theory helps explain fluctuations in business investment and informs policy decisions regarding economic stimulation.
The market structure that is characterized by a small number of large firms that have some market power is called
Perfect competitionperfect competitionModel of the market based on the assumption that a large number of firms produce identical goods consumed by a large number of buyers. is a model of the market based on the assumption that a large number of firms produce identical goods consumed by a large number of buyers.
An oligopoly is characterized by a market structure where a small number of large firms dominate the industry. These firms have substantial market power which allows them to influence prices and other market outcomes. Oligopolies often involve interdependence among firms, with decisions by one firm impacting the actions of others in the market.
In an oligopoly, there are typically a few firms that dominate the market, leading to a limited number of competitors. These firms have significant market power and can influence prices and output levels, often resulting in interdependent decision-making. While the exact number of firms can vary, the key characteristic of an oligopoly is that it consists of a small group of companies that collectively hold a large market share.
Significant features for a market structure include the number of firms and their scale, market share of the bigger firms, the nature of costs, extent of product differentiation, turnover of customers, and vertical integration.
a market structure in which a large number of firms all produce the same product
The concept of perfect competition is based on a large number of small firms, where no single firm can affect the market price. These firms operate as price takers, and use the cost supplied by the market. These ideal companies would insure efficiency. However, perfect competitive firms are unrealistic in real world scenarios.
The market structure is called oligopoly. Oligopoly is a market structure characterized by a small number of relatively large firms that dominate an industry.
In a market economy, firms make the goods. Households buy the goods.
in a market economy, firms make the goods. Households buy the goods
in a market economy, firms make the goods. Households buy the goods
The product market is the market in which firms sell their output of goods and services.