1. Possible Essay Use Exam style question text pg 6
“assess the case that the oligopoly market for smartphone consumers may be in the best interest of the consumers” 20 marks

2. Mark scheme

3. Things to include Pros Must be in context – draw from case study Cons
Large companies can invest in R&D – better phones
Large companies have econs of scale – price lower?
Monopsony power – could lower prices
Must be in context – draw from case study
Cons
Monopoly power – price makers – higher price
Less choice
Evaluation – judgement must be made

4. Lesson Objectives
All students will understand the importance of market power and market failure
Most students will be able to assess the implications of market failure
Few students will understand the importance of market failure on the economy

5. Market power
Question - What does this mean??

6. Market Power Things to consider Monopoly Power Monopsony Power Cartels
Price maker
Abnormal profit
Monopsony Power
Power over supplier
Cartels
Collusion
Restrictive practice
Barriers to entry; fixing prices; market rigging; bundling products
Tacit agreement

7. Power in labour Market
Monopsony and Monopoly power can be found in labour markets
How???

8. Power in labour Market
An employer that employs a significant % of a local population could have power over them, e.g. large factory or mine in a small town
Public Sector employees have power over , especially if have a strong trade union
Case study – Junior Doctors current dispute pg33

9. The implications of market failure
Imperfect Markets do not achieve Productive or Allocative efficiency
Summarise Apple case study to help explain this – pg34

10. Look at exam style Qc pg 34
Work in pairs to create a plan for this answer in your note book