2.  Market Structures, by book definition, is the nature and degree of competition among firms operating in the same industry. More simply put, market structures are the ways in which the market places for specific products are grouped together. Economists have divided this into three groups: perfect competition, monopolistic competition and oligopoly, and monopoly.

3.  Each of the four specific market structures have characteristics that are the reason why these product markets are grouped together. Each of you will be asked to examine one of the market structures in great detail. We will do an activity which will allow all students to become familiar with all 4 structures.

4.  Perfect Competition  Monopoly  Monopolistic Competition and Oligopoly

5.  Now that each person has examined their own section and has notes over it, you will join with other individuals to create a poster of information which will be shared with another couple of groups upon completion.  I am looking for the poster to have a way that neatly and accurately places all the information in a manner which can be understood by other students in the class.  I would also like to see 5 pictures which represent examples of your type of market structures.

6.  Each group will take turns explaining and presenting their information to the other groups. As the information is being presented, the students listening will be taking notes on the provided hand outs.  I will be collecting your individual notes and the hand outs you are taking from the other groups presentations

7.  Monopolists and Oligopolists typically have market power, or the ability to control prices and output. Typically, setting prices high and output low.  With market power, we also see predatory pricing, the process of using power in the market place to set price below that of cost to drive competitors out of business.

8.  A trust is when two or more businesses join together in order to create a structure that looks like a monopoly.  Our government created antitrust legislation in order to stop these practices.  Example is in 1890, the Sherman Antitrust Act was established, outlawing mergers and monopolies that limit trade between states.

9.  Over the years, government has continued to bring new legislation into the markets for proper regulation.  Even though, many practices have been outlawed over the years many businesses have found ways to still control the markets;

10.  Read on page 157 and 158 in your text read about Microsoft, Rockefeller/The American Tobacco Company, and AT&T and the reasoning for why our government felt the need to regulate on each of them. Write a 5 to 7 sentence paragraph explaining it in your own terms what happened in each situation.

11.  Occurs when a company joins with another company or companies to form a single firm;  Sometimes our government will also regulate/not allow mergers for fear of them gaining market power. They will always ask themselves what will be the effect on the market due to the merger.

12.  Government is now willing to no longer decide what role each company can play in a market and how much it can charge its customers.  Both deregulation and antitrust laws have the same purpose: to promote competition.

13.  On page 160, read about Airline Deregulation and explain all of the results from this deregulation.