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Market Structures On a post-it, write... Standard: SSMI4c

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Presentation on theme: "Market Structures On a post-it, write... Standard: SSMI4c"— Presentation transcript:

1 Market Structures On a post-it, write... Standard: SSMI4c
Turn notebook sideways and label page 31... Market Structures On a post-it, write... Standard: SSMI4c GOALS: Be able to identify basic characteristics of the 4 market structures.

2 A few vocab before we get started.
What is a market structure? Market structure= the nature & degree of competition among firms doing business in the SAME industry

3 Market Structures Follow my instructions for the notes page covering market structures.

4 Write Perfect Competition on outside flap
Define: structure w/many well informed & independent buyers & sellers who exchange identical products # of Firms: many firms w/ NO influence over the price Product Differentiation: identical product

5 Product Differentiation...
How different is the product from one firm to another in the same industry? Are the products IDENTICAL, SIMILAR or is there NO differentiation?

6 Perfect Competition Advertising: No advertising or brands b/c product is identical or the same. Market Entry: Buyers & sellers can easily enter or leave the market. Examples: “truck farming”--tomatoes, corn, cucumbers

7 Write Monopolisitc Competition on outside flap
Define: structure that meets ALL conditions of perfect competition except identical products # of Firms: many Product Differentiation: SIMILAR products

8 Monopolistic Competition
Advertising: Non-price competition advertising, giveaways, promotions… VERY IMPORTANT Market Entry: Easy Examples: designer clothing, cosmetics, shoes, jeans

9 Write Oligopoly on outside flap
Define: structure in which a FEW large sellers dominate the industry # of Firms: few Product Differentiation: product may have distinct features; fair amount of differentiation between products

10 Oligopoly Advertising: most tend to mimic each other in market & pricing; compete by enhancing their product (new/different) collusion=price fixing Market Entry: can be very difficult to enter Examples: cell phones, music companies, healthcare providers

11 Write Monopoly on outside flap
Define: structure with a SINGLE seller of a particular product # of Firms: 1 Product Differentiation: NONE--its the only product out in the market

12 Monopoly Advertising: no advertising--because NO competition
Market Entry: nearly IMPOSSIBLE Examples: water

13 Market Structures Perfect Competition Monopolisitc Oligopoly Monopoly Competition Most Competitive Least Competitive

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