| A | B |
|---|
| free enterprise system | system in which individuals start and operate their own businesses without government involvement |
| competition | the struggle between companies for customers |
| price competition | competition that focuses on the sale price of a product |
| nonprice competition | businesses choose to compete on the basis of factors not related to price |
| monopoly | exclusive control over a product or the means of producing it |
| risk | the possibility of financial loss |
| profit | the money earned from conducting business after all costs and expenses have been paid |
| supply | the amount or quantity of goods and services that producers will provide at various prices |
| demand | the amount or quantity of goods and services that consumers are willing and able to buy at various prices |
| surpluses | market situation in which supply exceeds demand |
| shortages | market situation in which demand exceeds supply |
| equilibrium | the point at which the amount of a product supplied equals the amount demanded |
