1. How businesses operate…
Market Structures
How businesses operate…

2. Characteristics of the Market Structures
Review of all four!

3. Read the excerpt about the case of cucumbers

4. The case of cucumbers Perfect Competition Type of Market
Number of firms in the industry
Similar or different products
Ability to control prices
Barriers to entry
Non-Price Competition?
Perfect Competition
Many!!!
As in thousands
Identical Products
No control over prices
Easy to enter the market and be a seller
No non-price competition
The case of cucumbers

5. Read the excerpt about the case of haircuts

6. Monopolistic Competition
Type of Market
Number of firms in the industry
Similar or different products
Ability to control prices
Barriers to entry
Non-Price Competition?
Monopolistic Competition
Many firms
As in hundreds!
Different products
Some control over prices
Fairly easy to enter
A lot of non-price competition (because they have to differentiate their products for customers)
Your haircut

7. Read the excerpt about the case breakfast cereals

8. The case of your breakfast cereal
Oligopoly
Type of Market
Number of firms in the industry
Similar or different products
Ability to control prices
Barriers to entry
Non-Price Competition?
Oligopoly
Few firms (10-20)
Significant control over prices
Difficult to enter
A lot of non-price competition!
The case of your breakfast cereal

9. Read the case about DeBeers diamonds

10. The case of diamonds Monopoly Type of Market
Number of firms in the industry
Similar or different products
Ability to control prices
Barriers to entry
Non-Price Competition?
Monopoly
One firm
A unique (different) product
Significant control over prices
Difficult to enter the market
Non-price competition may exist
The case of diamonds

11. Watch this video as a review…

12. Work with someone in class or using the internet to research and identify at least FOUR examples of firms or markets for each one…

13. Lunch break…
Wait until the Substitute releases you!!!

14. And we’re back…
Working independently please answer the following questions on a Word document and send them to my box as a .pdf or .doc by the end of the hour!

15. Questions… Why is competition a good thing…give at least 4 examples
Economists agree that it is better to have competitive industries in an economy than monopolies. Think of a competitive industry in your area, such as fast food. What are some of the advantages of having competition in this industry? Make sure to discuss prices, quality of goods, and amount of goods available.