| A | B |
|---|
| free enterprise system | an economic system based on freedom of choice |
| competition | the struggle between companies for customers |
| price competition | focuses on the sale price of a product |
| nonprice competition | businesses coose to compete on the factors not related to price |
| monopoly | exclusive control over a product or means of production |
| risk | the potential for loss or failure |
| profit | the money earned from conducting business after all costs and expences have been paid |
| licensing agreement | protects the originator's name and products |
| demand | the consumers willingness and ability to buy products |
| supply | the amount of goods producers are willing to make and sell |
| surplus | when supply exceeds demand |
| shortage | when demand exceeds supply |
| equilibrium | when the amount of product supplied is equal to the amount of product demanded |
| private enterprise | a privately owned business |
| income | the amount of money received during a period of time in exchange for goods or services |
