| A | B |
|---|
| free enterprise system | In theory, this encourages individuals to start and operate their own businesses without government involvement. |
| monopoly | State that exists when there is no competition because one firm controls the market for a given product. |
| demand | Refers to consumer willingness and ability to buy products. |
| equilibrium | State that exists when the amount of product supplied is equal to the amount of product demanded. |
| competition | Struggle between companies for customers. |
| profit | Money earned from conducting business after all costs and expenses have been paid. |
| licensing agreement | Agreement that protects and originator's name and products. |
| supply | Amount of goods producers are willing to make and sell. |
| nonprice competition | Competition that focuses on factors that are not related to price. |
| risk | Potential for loss or failure. |
| price competition | Competition that focuses on the sale price of a product. |
