KINGDOM OF CAMBODIA

NATION RELIGION KING

Assignment: Lesson Summary

Contents:

1. Supply, Demand, and Price: The Managerial Challenge (Page 53)

2. Global Application: The Bric Countries and the Supply and Demand for Oil (Page 53-55)

1. Supply, Demand, and Price: The Managerial Challenge

The pricing of products and the allocation of a company’s scarce resource is the market

environment.

Perfect competition is the forces of supply and demand that are the sole determinants of

market price.

Imperfectly competitive is in which firms act as “price makers” by exercising varying

degrees of control over the price of their product.

Market power is the control of market price.

2. Global Application: The Bric Countries and the Supply and Demand for Oil

The graphs in Figure 3.9 below give us a general idea of the current supply and demand

conditions for oil. One of the BRICs, Russia, is the leading producer of oil among the BRIC and

G6 countries. The United States is the leading consumer. But notice how China has reached the

point where its daily oil consumption is about half that of the United States.