1. Competitive?

5. Market Structures

6. Objectives Recognize key components of a market structure. Identify the four market structures and explain characteristics of each.

7. Market Structures 1.Number of buyers and sellers 2.Size distribution of buyers and sellers 3.Degree of product differentiation 4.Ease of entry of new firms

8. Pure Competition = many buyers and sellers

9. Pure Competition 1.Individuals can’t influence price 2.Homogenous product 3.Perfect knowledge

11. Other Examples?

12. Monopoly Number of firms = 1

13. Monopoly 1. One firm controls market 2. No close substitutes for product 3. Restrictions to new firms

15. Other Examples?

17. Oligopoly A few, large sellers

18. Oligopoly 1.Demand - Price decreases are matched - Price increases are not 2. Price stability 3. Significant Barriers to entry.

20. Other Examples?

21. Monopolistic Competition Many firms

22. 4.Monopolistic Competition 1.Differentiated products 2.Competitive Market 3.Higher prices, more choices than Monopoly 4.Advertising/Promotion important

24. Examples?

26. Who’s more competitive? -Rank 1-4 - Is there adv. or dis.?

32. Directions In groups Create own cartoon, representing assigned structure Agricultural or non-agricultural Draw and present to class