Different Market Structure in the Philippines

The ppt is the introduction of different market structure in the philippines

1. Pure Competition

2. The  Perfect Competition  is a market structure where a large number of buyers and sellers are present, and all are engaged in the buying and selling of the homogeneous products at a single price prevailing in the market. Pure Competition

3. In other words, perfect competition also referred to as a pure competition , exists when there is no direct competition between the rivals and all sell identically the same products at a single price.

4. Features of Perfect Competition Large numbers of buyers and sellers Homogenous product Free entry and exit No transportation cost Absence of government and artificial restrictions

5. Absence of Gov’t and Artificial Restrictions Under the perfect competition, both the buyers and sellers are free to buy and sell the goods and services. This means any customer can buy from any seller, and any seller can sell to any buyer. Thus, no restriction is imposed on either party. Also, the prices are liable to change freely as per the demand-supply conditions. In such a situation, no big producer and the government can intervene and control the demand, supply or price of the goods and services.

6. A market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute. Monopoly

7. In a monopoly market , factors like government license, ownership of resources, copyright and patent and high starting cost make an entity a single seller of goods. All these factors restrict the entry of other sellers in the market. Monopolies also possess some information that is not known to other sellers.

8. Characteristics associated with a monopoly market make the single seller the market controller as well as the price maker. He enjoys the power of setting the price for his goods.

9. Although monopolist is a “price maker,” he is not allowed to change any price he wants for utilities like water and electricity. Specific government agencies control their prices.

10. In the Philippines, MERALCO first submits a proposal for an increase in electricity price to government agencies (Energy Regulatory Board). Then the public sector is informed of such increase and consultations are made before implementing the increase.

11. Features of Monopoly Single seller and a lot of purchasers Unique goods High barriers to entry

12. Oligopoly Oligopoly is another form of imperfect market structures. In an oligopoly, there is more than one seller but they remain to be few so that a considerable degree of market power is exercised.

13. Features of Oligopoly Profit maximization condition Oligopolies are price setters rather than price takers Barriers to entry are high Product may either be homogenous or differentiated

14. A  cartel  is a group of apparently independent producers whose goal is to increase their collective profits by means of price fixing, limiting supply, or other restrictive practices. Cartels typically control selling prices, but some are organized to force down the prices of purchased inputs.

15. Monopolistic Competition This kind of market structure refers to many firms selling differentiated products. This means that product of the same industry seem to be the same but they are actually not.

16. Monopolistic Competition In this market structure, customer’s loyalty is experienced by the seller, when certain consumer’s prefer their brand over others.

17. Features of Monopolistic Competition 1. Large Number of Buyers and Sellers 2. Free Entry and Exit of Firms 3. Product Differentiation 4. Lack of Perfect Knowledge 5. More Elastic Demand

18. Activity 2: Exploration 1.0 Graphic Organizer The students will make a graphic organizer portraying their understanding of the different market structures. They will use the framework provided by the teacher.

19. Market Structure Description No. of Buyers No. of Sellers Products                                                  

20. SAMPLE GRAPHIC ORGANIZER