1. Today Topic: Market Structures Video: Food Inc.
Last major grades for this 9 weeks:
Chapter 7-9 Test (Open Notes/Book???)
Next 9 weeks Business Proposal Project

2. Market Structures, 7
Today: you will venture forth and discover the world of market structures by examining perfect competition. Also, known as competition that is considered perfect but, then again, nobody is perfect.
We all have our faults even organizations that some consider to be perfect. However, organizations that are involved in perfect competition do have certain characteristics that people who teach economics, such as myself, use to describe organizations that are considered to be perfect competitors.

3. What we’re doing in here
This brief introduction into markets, that some call perfect, will lead us into the joyous and rewarding career of Preston Tucker who established the Tucker Car Company in However, due to the evil, self-serving, narcissistic American automobile manufacturers and George Bush, Tucker was driven out of business and into bankruptcy. Pay attention as there will be an assignment about this movie.

4. Perfect Competition
street vendors

5. Barriers to Entry

6. Price and Output Perfectly competitive markets are efficient.
Efficient use of factors of production.
Prices forced down/prices just cover costs of doing business.

7. Monopoly: A market dominated by a single seller
Natural Monopoly (i.e. water company)
Technology and change can destroy a natural monopoly (i.e. phone company)
Government Monopolies (can be created by:
Patent
Franchise
Licenses (i.e. FCC)
Industrial Organizations (i.e. major league baseball)

8. Setting Prices
Price discrimination-dividing groups of consumers to charge different prices by any company with market power: the ability to change prices and output like a monopolist.
Targeted discounts: targeting customers who need the product/ service the most. (i.e. discounted airfares by purchasing in advance or online; manufacturers’ rebate offers; senior citizen, military, or student discounts.

9. Monopolistic Competition
Whereas Perfect Competition-sell identical products.
Def: Market in which many companies sell products that are similar but not identical

10. Monopolistic Competition

11. Monopolistic Competition

12. Oligopoly

13. Practices that concern government
Price leadership (They control prices)
Collusion (agreement to set prices and production levels) . Can lead to:
price fixing-agreement to sell at same or very similar prices
Cartels (formal organization of producers that coordinate prices or limit production-illegal in U.S.)

14. Taday Writin Vacabyalarry fer a qwiz fryday
Fuud Ink! Downt fall asleip oar yous yer sellular fone!

15. Terms Market structure Competition Industry Product differentiation
Natural monopoly
Technological monopoly
Government monopoly
Market failure
Public good
Spillover effects
Externalities
Cost-benefit analysis
Trusts
Cease and desist order
Economies of scale
Public disclosure
Mortgage
forclosure