#1.4 : Market Structure and Contemporary Issues Facing the Filipino Entrepreneur

Question 1

It is a product that people buy with the hope that it will be beneficial or generate income in the future.

Answer 1

Income

Question 2

2 types of investment and their difference

Answer 2

A long-term investment is buying a property or real estate and the profit/benefit generated is slow but high, while, Short-term investment is a generating small profit/benefit but frequent, and its problem is the high opportunity cost.

Question 3

Difference of stocks and bonds

Answer 3

Stock is partial ownership and interest in a corporation, while, Bonds are a form of long-term debt that the corporation promises to pay.

Question 4

It is the distribution of a corporation’s profit.

Answer 4

Dividends

Question 5

A factor to consider wherein the total fixed costs and total variable costs are.

Answer 5

Rentals

Question 6

Difference of total fixed cost and total variable cost of production

Answer 6

Total fixed costs are expenses that are constant, while, total variable costs are expenses that change directly and proportionally.

Question 7

Increasing cost of living = increasing _________

Answer 7

Minimum wage

Question 8

It is a significant issue facing by the entrepreneurs ; income in government, loss in businesses

Answer 8

Taxes

Question 9

Business tax are paid _____.

Answer 9

monthly

Question 10

Income tax are paid ______.

Answer 10

quarterly

Question 11

These are different compositions of sellers and distinguishing quality of goods.

Answer 11

Market Structures

Question 12

Pure Competition’s seller, product, entry of new firm, example, and common problem

Answer 12

Seller: many (price-takers)
Product: homogenous/similar
Entry of new firm: free
Example: sugar
Common problem: how to survive and get a fair market share

Question 13

Monopoly’s seller, product, entry of new firm, example, and common problem

Answer 13

Seller: one (price-taker)
Product: one, with little to no substitute
Entry of new firm: no
Example: telecom
Common problem: improvement of product/service

Question 14

Oligopoly’s seller, product, entry of new firm, example, and common problem

Answer 14

Seller: few
Product: differentiated
Entry of new firm: restricted
Example: oil, fuel
Common problem: high capital requirement

Question 15

Monopolistic Competition’s seller, product, entry of new firm, example, and common problem

Answer 15

Seller: many
Product: differentiated
Entry of new firm: free
Example: shampoo
Common problem: distinguishing quality