1. Chapter 8
Market Structures

2. Warm-up
What is a monopoly? Think of the board game and think how prices change when you own one property compared to owning a pair/set of properties?
Think of competition and how that affects prices too.
Be prepared to share your thoughts with the class!

3. Pure Competition 2. producers of agricultural products
-1. many suppliers offer very similar products
2. producers of agricultural products
3. pure competition will result in one consistent price
Discussion Question
List the variety of competitors when shopping for a new pair of jeans. What is the advantage of having several stores offer the same merchandise?

4. Monopoly One supplier offers a unique product
1. market economy wants to control monopolies
2. consumers do not have choices
Discussion question
What happens to prices for consumers when their options are limited?

5. Oligopoly A few businesses offer very similar products or services
A. airline industry B. automobile manufacturers
C. greeting card companies D. interstate delivery services
E. internet service providers
What are three examples of internet providers?

6. Monopolistic Competition
Where there are many firms competing with products that are somewhat different
1. most common type of economic competition
2. the greater differences among products and services, the more control the business has on setting price

7. Understanding the Competition
1. Maximize profits
2. Improve products and services
3. Keep up-to-date on the latest market trends
Name some restaurants offering similar menu items

8. Understanding the Competition Cont.
Improving products and services are the most important part for businesses. Monopolistic and pure competition makes businesses watch what the competition is doing to improve their products and services.
What are some improvements in products and/or services you can think of from your favorite store/restaurant?

9. Power Point Your Power point should include the following;
Introductory slide
2 slides per car, use pictures and all critical information about that car
A slide explaining why competing business frequently locate in close proximity. Also, how can a business keep track of the competition in the community?