<============================================  Perfect Competition MonopolyOligopoly MONOPOLISTIC COMPETITION Pure Free Market No Competition Market Structure.

Slides:

Advertisements

Similar presentations

Economics: Principles in Action

Advertisements

Chapter Six Market Structures: Why market competition affects you every time you shop!

Market Structure The concept of market structure simply relates to how much market power or control a particular firm has in affecting the level of market.

LEQ: HOW DOES COMPETITION EFFECT WHAT IS PRODUCED IN THE MARKETPLACE? KEY TERMS: MONOPOLY MARKET STRUCTURE PERFECT COMPETITION PATENT COPYRIGHT CARTEL.

Monopolies. Types of Market Structure Four principal models of market structures: Four principal models of market structures: 1.Perfect Competition –

The Impact of Monopoly.

Explorations in Economics

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

The Four Conditions for Perfect Competition

Ch. 7: Market Structures.

Economics Notes Chapter 7. Costs of Production – all costs necessary for production to take place Fixed Costs – Costs of production that do not change.

Monopoly. Monopoly Monopoly is when the market is dominated by a single seller Monopoly is when the market is dominated by a single seller –They can take.

Market Structures. Pure/ Perfect competition is a market structure in which a large number of firms all produce the same product. 1. Many Buyers and Sellers.

MARKET STRUCTURES AND COMPETITION

Chapter 7 Section 1 Perfect Competition

Market structures Econ chapter 7. vocab market structure: nature & degree of competition in an industry laissez-faire: no gov. interference in economy.

Market Structures chapter 7 review. Market Structures Divide paper into 4 parts On the front side label each section with one following: 1. Perfect Competition.

A Spectrum of Markets. 4 Kinds of Markets Pure or “Perfect” Competition Monopolistic Competition Oligopoly Pure or Perfect Monopoly.

Market Structures in a Free Market Economy

Monopolies Definition, Causes & Pricing. Monopoly Market Characteristics One Seller Unique Product—no substitutes Difficult/Impossible to enter or leave.

KECSSMs. Murren Outcome : SWBAT compare monopolies, oligopolies and monopolistic competition.

Chapter 12 Imperfectly Competitive Markets.  There are three categories of imperfect competition among sellers Monopoly Monopolistic Competition Oligopoly.

Market Structure Summary TEST REVIEW.

MARKET STRUCTURES MONOPOLY. O FORM WHEN BARRIERS PREVENT FIRMS FROM ENTERING A MARKET THAT HAS A SINGLE SUPPLIER O CAN TAKE ADVANTAGE OF THEIR MARKET.

Market Structures Regulation and Deregulation. How firms increase Market Power  Controlling prices - leading firms can form a cartel, merge, or practice:

Review 1.Difference between fixed and variable resources 2.Define and give an example of the law of diminishing marginal returns 3.Identify the three stages.

Monopolies!!! Are they good for society?. Monopoly Characteristics: 1. Number of Firms = 1 2. Variety of Goods = None 3. Barriers to Entry = Complete.

Types of Competition Chapter 7. Perfect Competition Many sellers – Similar Products – dry cleaners – agriculture Easy entry No control over price –

Market Structures Chapter 7. MARKET STRUCTURES AND BUSINESS ORGANIZATIONS.

Econ 100 Lecture 6-1 Market Failure: Monopoly

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

Unit 4: Imperfect Competition 1. Memorizing vs. Learning Try memorizing the above number How effective is memorizing it? The point:

Vocabulary Monopoly- When a market is dominated by a single producer. Anti-Trust Laws- Designed by the US Gov’t in order to prevent monopolies. Vertical.

Unit #4: Market Structures Market Characteristics.

Monopolies Definition, Causes & Pricing Chapter 15.

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

Topic 4: Competition and Market Structure. I.Perfect Competition A.Conditions for Pure Competition *Def: Pure Competition 1.Many buyers and sellers participate.

Monopolies. Monopoly  Characteristics  1. A single producer - only producer of good or service  2. No close substitutes – if consumer does not buy.

Microeconomics and Market Structures Chapter 7 – Market Structures.

Market Structures Regulation & Deregulation Chapter 7 Section 4.

Oligopoly Pricing Are bigger companies more efficient?

Agenda- 4/22 Current Events Review test/ make-ups/ corrections

Monopoly and imperfect competition

Perfect Market Competition And Non Perfect Market Competition

Chapter 7 Market Structures.

Conditions of an Oligopoly

Unit 4: Imperfect Competition

Market Organizations Objective:

Long-Run Costs Copyright ACDC Leadership 2015.

Chapter 7 – Market Structures

Definition, Causes & Pricing Chapter 15

Chapter 7 Section 4.

Pure Competition Chapter 10 1/16/2019.

Competition and Market Structures

Market Structures: Different Types of Competition

Market Structures and Measuring the Economy

What would life be like without prices?

MARKET STRUCTURES The structural condition of a market has an enormous influence on supply, demand, pricing, efficiency, fairness and resource allocation.

GRAB A TEXTBOOK AND THE WORKSHEET!

Economics: Principles in Action

MARKET STRUCTURES The structural condition of a market has an enormous influence on supply, demand, pricing, efficiency, fairness and resource allocation.

Essential Question 6 What factors affect the level of competition in various U.S. industries?

Topic 4: Competition and Market Structure

Definition, Causes & Antitrust Laws Chapter 15

Definition, Causes & Pricing Chapter 15

Presentation transcript:

<============================================  Perfect Competition MonopolyOligopoly MONOPOLISTIC COMPETITION Pure Free Market No Competition Market Structure Continuum

Monopoly Market Characteristics One Seller Unique Product—(no substitutes) Very difficult to enter/leave industry Price Setters: great deal of price control

Examples of Monopolies More Distant Past: Standard Oil (John D. Rockefeller) United States Steel (Andrew Carnegie) More Recent Past: American Telephone & Telegraph (AT & T) Microsoft

Current Monopolies NATURAL MONOPOLY: a market that runs most efficiently when one firm supplies all of the output Electric Utilities Water for your home Garbage collection LOCAL MONOPOLY: for various reasons there are no other competitors in a geographic area i.e. only gas station in a small town Avoid buying gas here if you can!

Bottom Line: Monopolies lead to a) Higher price & lower Quantity produced b) Less variety of products

Anti-Trust Laws Anti-Trust Laws, administered by the U.S. Department of Justice, can be used to a)Break up a monopoly (like Standard Oil or AT & T) b) Prevent companies from merging to maintain competition (AT & T and T-Mobile?)

Video clip from “Fair Fight in the Marketplace” Offender: Archer Daniels Midland Co. (segment 2) 6 min. 24 sec.

<============================================  Perfect Competition Monopoly OLIGOPOLY Monopolistic Competition How close to Adam Smith’s World? Pure Free Market No Competition U.S. Economy

Oligopoly Examples Car makers Steel industry Aircraft manufacturing Oil industry Airlines Tobacco industry Beer industry Soda industry Home Improvement Music recording industry Textbook industry Wireless communications industry Aerospace industry

N0, because of Economies of Scale. Economic Activity is often MORE EFFICIENT when done on a LARGE SCALE Can you have Perfect Competition in: Automobile Production Airliner Production

Economies of Scale Definition: factors that cause a producer’s average cost per unit to fall as output rises

Economies of Scale Example 1 unit of energy 100 units of energy 1000 units of energy 10,000 units of energy 100,000 units of energy 1,000,000 units of energy Cost of building power plant (fixed cost) $10,000,000 Cost per unit of energy produced $10,000,000 $100,000 $10,000 $1000 $100 $10