Warm up How does competition relate to the laws of Supply and Demand? Is competition a good thing for our Economy?

10/20- End of quarter grades Agenda Warm up Review of market types Types of monopolies Objectives Define and describe different market types: pure competition, monopoly, oligopoly, and monopolistic competition

Types of Markets We have learned about the laws of supply and demand However, while learning about supply and demand, we have assumed that the market for the good or service we have been graphing is always the same But, Markets are not all the same. There are many types of markets

Characteristics that Define Market Structure Markets are defined by how competitive they are Number of producers Products similar or different? How easy is it to enter the industry? How much control over prices? Non-price competition?

What is a difference between these two markets?

Non price competition In many markets, firms compete by trying to provide the lowest price possible for their good or service. This is price competition Non price competition involves competing in ways other than price Turn to a partner and come up with a specific example of non price competition xgI

Market Characteristics Type of Market # of Firms in the Industry Similar or different products Ability to Control Prices Ease of entering the industry Existence of non-price competition [leave this one blank] Pure Competition Monopolistic Competition Oligopoly Monopoly Copy the chart below into your notebook and make sure to leave space in the boxes so you can fill them in as you complete the assignment.

Market Characteristics Type of Market # of Firms in the Industry Similar or different products Ability to Control Prices Ease of entering the industry Existence of non-price competition [leave this one blank] Pure Competition A lot Similar None Very easy No Wheat Monopolistic Competition A lotDifferentia ted LowEasy Yes Oligopoly Few Both Some Hard Yes Soda Monopoly 1 Unique product A lot Hard Yes AP testing Copy the chart below into your notebook and make sure to leave space in the boxes so you can fill them in as you complete the assignment.

Types of Monopolies pg. 3 PKT TermDefinition List an example and explain why Governmental Monopoly Resource Monopoly Natural Monopoly A monopoly where the government (federal, state or local) gives a single producer the sole right to provide a specific good or service. patents & copyrights public franchises licenses A monopoly where a single producer owns or controls a specific natural resource that no one else has access to in that area. A monopoly where a single producer provides a good or service because it is more efficient having one producer than having two or more producers due to economies of scale. Debeer’s diamonds Copyrights for particular songs Utilities