Market Structures Economics Unit 4, Lesson 2

Slides:

Advertisements

Similar presentations

Chapter 7 Market Structures

Advertisements

Market Structures Review

Market Structures. Monopoly  Single seller of a product dominates market  “price makers”/”price setters”  Barriers to entry high  Most newspapers,

Monopolistic Competition and Oligopoly

Economics: Principles in Action

Chapter 7 Market Structures.

PERFECT COMPETITION 7.1.

Market Structures The nature and degree of competition between firms operating in the same industry.

Chapter 7 Market Structures Hello! Market Structure ► Market structure refers to the ways that competition occurs, based on the number of firms, the.

Economics Chapter 8 Review. 1 A(n) ___________ market has many buyers and sellers that all sell identical goods. Perfectly competitive.

Market Structures The number of companies producing identical products.

M ARKET S TRUCTURES Mr. Duggan Economics. P ERFECT C OMPETITION Four Conditions for Perfect Competition 1. Many buyers and sellers participate in the.

Market Structures The different types of markets and the way in which businesses compete.

 1. Shortage occurs:  When demand is greater than qty supplied at the current price.  If left alone (no gov’t interference), prices will rise  2. Surplus:

Competition in a Free Market Economy. What is Competition? Competition is the struggle between buyers and sellers to get the best products at the lowest.

KECSS Ms. Murren Economics10/31/11 Outcome: SWBAT compare oligopolies and monopolistic competition.

Market Structures Ohh to be a seller in the market of my choice!

Types of Economic Competition. Determining the Type of Economic Competition The number of firms competing in the market The amount of similarity between.

Monopolistic Competition and Oligopoly. Objectives Describe characteristics and give examples of monopolistic competition. Explain how firms compete without.

Copyright©2004 South-Western 3 American Business.

Market Structures Amount and Degree of Competition among Firms Competing in the same Industry ©2012, TESCCC Economics Unit 4, Lesson 2.

1.How do you face competition in your daily life? 2.How does competition apply to economics in a positive and a negative way? 1.How do you face competition.

Market Structure The nature and degree of competition between firms operating in the same industry.

Monopoly. Characteristics of monopoly 1.Single firm (producer, seller) 2.No variety of goods 3.Complete barriers to entry 4.Complete control over price.

COMPETITION Business Economics. Market Structure Nature & degree of competition among firms in same industry. Industry - companies engaged in a particular.

Chapter 7 Market Structures. 4 conditions for pure competition: 1. Large numbers of buyers and sellers act independently 2. Sellers offer identical products-

Market Structures The nature and degree of competition between firms operating in the same industry.

Highly Competitive Markets.  Aim: To what extent is OPEC a monopoly?  Homework: Read section on Imperfectly Competitive Markets, write down definitions.

Topic 7 Competition, Market Structures, & the Role of Government.

A market structure is the nature and degree of competition among the firms operating in the same industry. There are four different market structures….

Market Structures The nature and degree of competition between firms operating in the same industry.

Market Structures Ch. 7. Sec. 1: Perfect Competition Definition: Perfect competition – aka: pure competition Four Conditions for perfect competition –

Chapter 7 Section 1. Perfect Competition Perfect competition exists with these 5 conditions: Perfect competition exists with these 5 conditions: Large.

Competition in the Market. Four Types of Competition Monopoly Competition Oligopoly Natural Monopoly.

Market Structures. Definition Nature and degree of competition among firms operating in the same industry Nature and degree of competition among firms.

COMPETITION & MARKETS. MARKET STRUCTURES Type of market structure influences how a firm behaves: Pricing Supply Barriers to Entry Efficiency Competition.

Competition and Market Structures Chapter 7 Section 1 Advertising and Branding lessons adapted from Tim Wharton.

Chapter 7: Market Structures Section 2. Slide 2 Copyright © Pearson Education, Inc.Chapter 7, Section 2 Introduction What are the characteristics of a.

Oligopoly Pricing Are bigger companies more efficient?

Market Structures SSEMI4 The student will explain the organization and role of business and analyze the four types of market structures in the U.S. economy.

Market Structures Economics Unit 4, Lesson 2

Chapter 7: Market Structures

Intro to Market Structures

Today Topic: Market Structures Video: Food Inc.

Market Structures Chapter 7.

Competition and Monopolies

Types of Economic Competition

Does new technology provide for the better good of all Americans?

Supply & Demand 4 Markets STUDY this power point CAREFULLY!

Market Structures 4 types of markets.

MONOPOLISTIC COMPETITION

Answer all questions in full sentences.

Competition and Market Structure

Unit 3- Microeconomics Market Structures.

Market Structures SSEMI4 The student will explain the organization and role of business and analyze the four types of market structures in the U.S.

Chapter 7: Market Structures Section 3

Market structures microeconomics.

Market Structures On a post-it, write... Standard: SSMI4c

Chapter 7: Market Structures Section 2

Competition and Market Structures

Market Structures: Different Types of Competition

Economics: Principles in Action

Perfect Competition Market where there are numerous buyers and sellers

Market Structures Pure Monopoly Perfect Competition

Other Market Structures

FOUR TYPES OF MARKET STRUCTURES

Topic 4: Competition and Market Structure

Competition and Monopolies

Presentation transcript:

Market Structures Economics Unit 4, Lesson 2 Amount and Degree of Competition among Firms Competing in the same Industry ©2012, TESCCC

Industry All the sellers of the same or similar product Example: Automobile industry ©2012, TESCCC

Market The buyers The sellers The product The price ©2012, TESCCC

Market Structure Identifies the amount of competition in an industry If we can identify the amount of competition in an industry, we’ll be able to say something about. Pricing Price competition ©2012, TESCCC

Perfect Competition Model does not exist Infinite number of sellers Consumers have access to all information. Sellers have no control over prices. Identical products Buyer does not prefer one item over the other. Most competitive ©2012, TESCCC

Imperfect Competition Three types of imperfect competition ©2012, TESCCC

Monopolistic Competition All conditions of perfect competition with product differentiation Non-price competition Most competitive of imperfect competition Most companies operate here ©2012, TESCCC

Oligopoly Few, large firms dominate the market (70-80% of the market concentration). Not as much competition- Firms have some control over prices. Price leadership Collusion Price fixing ©2012, TESCCC

Monopoly One seller No competition Legal types Natural Technological- Patent or copyright Governmental ©2012, TESCCC

Monopolies Natural It would be inefficient for more than one seller to operate. ©2012, TESCCC

Monopolies Technology Patent, copyright ©2012, TESCCC

Monopolies Governmental Government owned and controlled Example: US Postal Service ©2012, TESCCC

Monopolies Franchises or licenses Industrial organizations Cable companies Radio, TV, cell phones, broadband Industrial organizations NFL, NBA, etc. ©2012, TESCCC

Monopolistic Perfect Competition Competition Oligopoly Monopoly Most Least Continuum of Market Structures – Shows degrees of competition from most competition to least competition. ©2012, TESCCC

Price Discrimination Divide consumers into groups. Charge different prices to different sections of consumers. Examples? Movie theatre Senior citizen discounts Cleaners Airline tickets ©2012, TESCCC