market-structure.pptx for Applied Economics

Grade 11 lesson for Applied Economics
Disclaimer: not mine, credits to the original owner of the ppt which is my teacher.

1. RECAP….

2. TIME TO THINK 1. What companies do you believe are the largest? 2. Why do you think that these companies are among the largest?

3. MARKET STRUCTURES

4. Learning Competencies : At the end of the lesson, the students are expected: To identify four different types of market structures. To understand the differences between each type of market structure. To complete a grid detailing specific aspects of each market. MARKET STRUCTURES

5. Activity No. 1 “ WHAT’S YOUR BET? ” TIME TO THINK How do some products differ from another? Keep your worksheets. We’ll try to go back on that later.

6. TIME TO THINK Activity No. 2: “Market Structure Simulation” Price Range: 25 cents to 3 pesos

7. MARKET STRUCTURES 1. What is market ? - an interaction between buyers and sellers. 2. Do you know what are the 4 TYPES OF MARKET STRUCTURE ? Perfect Competition Monopoly Monopolistic Competiition Oligopoly

8. MARKET STRUCTURES Perfect Competition - large number of firms

9. MARKET STRUCTURES Perfect Competition - large number of firms

10. MARKET STRUCTURES Perfect Competition - large number of firms - identical/ homogenous

11. MARKET STRUCTURES Perfect Competition - large number of firms - identical/ homogenous - Free entry/ exit

12. MARKET STRUCTURES Perfect Competition - large number of firms - identical/ homogenous - Free entry/ exit One of the characteristic of PC is that they are efficient. In a perfectly competitive market, price and output reach their equilibrium levels. Can someone draw a graph showing the equilibrium levels?

13. Examples: Apple cucumber cabbage meat MARKET STRUCTURES Perfect Competition

14. MARKET STRUCTURES Perfect Competition Monopoly - large number of firms - identical/ homogenous - Free entry/ exit - Single seller; unique

15. MARKET STRUCTURES Perfect Competition Monopoly - large number of firms - identical/ homogenous - Free entry/ exit - Single seller; unique - Extremely high barriers to entry

16. MARKET STRUCTURES Monopoly - Single seller; unique - Extremely high barriers to entry # COMPLETE Market Power Examples: DASURECO MARWASA MICROSOFT APPLE’S IOS

17. MARKET STRUCTURES Perfect Competition Monopoly - large number of firms - identical/ homogenous - Free entry/ exit - Single seller; unique - Extremely high barriers to entry # No Market Power # COMPLETE Market Power

18. MARKET STRUCTURES Perfect Competition Monopoly - large number of firms - identical/ homogenous - Free entry/ exit - Single seller; unique - Extremely high barriers to entry # No Market Power # COMPLETE Market Power Monopolistic Competiition Oligopoly

19. MARKET STRUCTURES Perfect Competition Monopoly - large number of firms - identical/ homogenous - Free entry/ exit - Single seller; unique - Extremely high barriers to entry # No Market Power # COMPLETE Market Power Monopolistic Competiition Oligopoly - Still has many sellers - Free entry/ exit - similar but not identical

20. MARKET STRUCTURES Perfect Competition Monopoly - large number of firms - identical/ homogenous - Free entry/ exit - Single seller; unique - Extremely high barriers to entry # No Market Power # COMPLETE Market Power Monopolistic Competiition Oligopoly - Still has many sellers - Free entry/ exit - similar but not identical - Highly substitutable

21. MARKET STRUCTURES Perfect Competition Monopoly - large number of firms - identical/ homogenous - Free entry/ exit - Single seller; unique - Extremely high barriers to entry # No Market Power # COMPLETE Market Power Monopolistic Competiition Oligopoly - Still has many sellers - Free entry/ exit - similar but not identical - Highly substitutable

22. MARKET STRUCTURES Monopolistic Competiition - Still has many sellers - Free entry/ exit - similar but not identical - Highly substitutable Example: # Small Amount of Market Power CAN YOU GIVE OTHER EXAMPLES?

23. MARKET STRUCTURES Perfect Competition Monopoly - large number of firms - identical/ homogenous - Free entry/ exit - Single seller; unique - Extremely high barriers to entry # No Market Power # COMPLETE Market Power Monopolistic Competiition Oligopoly - Still has many sellers - Free entry/ exit - similar but not identical - Highly substitutable # Small Amount of Market Power - few large, profitable firms

24. MARKET STRUCTURES Perfect Competition Monopoly - large number of firms - identical/ homogenous - Free entry/ exit - Single seller; unique - Extremely high barriers to entry # No Market Power # COMPLETE Market Power Monopolistic Competiition Oligopoly - Still has many sellers - Free entry/ exit - similar but not identical - Highly substitutable # Small Amount of Market Power - few large, profitable firms - Some barriers to entry but not impossible to get in

25. MARKET STRUCTURES Oligopoly - few large, profitable firms - Some barriers to entry but not impossible to get in Example: - Each firm has a large chunk in the market Collusion Price Fixing Example: OPPO AND VIVO Network Bank and BDO CAN YOU GIVE OTHER EXAMPLES?

26. MARKET STRUCTURES Perfect Competition Monopoly - large number of firms - identical/ homogenous - Free entry/ exit - Single seller; unique - Extremely high barriers to entry # No Market Power # COMPLETE Market Power Monopolistic Competition Oligopoly - Still has many sellers - Free entry/ exit - similar but not identical - Highly substitutable # Small Amount of Market Power - few large, profitable firms - Some barriers to entry but not impossible to get in # Large Amount of Market Power

27. Activity No. 3: “ FILL – IN THE GRID ” Unique, None, Little (Low), Some, Many, High,Complete   Perfect Competition Monopolisitc Competition Oligopoly Monopoly Number of Firms         Control over prices         Barriers to entry and exit        

28. Activity No. 3: “ FILL – IN THE GRID ” Unique, None, Little or Low, Some, Many, High, Complete   Perfect Competition Monopolisitc Competition Oligopoly Monopoly Number of Firms  MANY  MANY LITTLE (FEW) UNIQUE Control over prices  NONE LITTLE/LOW SOME  HIGH Barriers to entry and exit  NONE to LITTLE NONE to LITTLE HIGH COMPLETE 

29. Generalizations: Market structures refer to the characteristics, level of competition, and the resulting prices and quantities of goods and services produced. In addition… “the greater the amount of competition in a market, the lower the price and higher the quantity produced and vice versa.” Perfect Competition Monopoly Monopolistic Competiition Oligopoly Greater competition Little to no competition

30. Application : Self- Evaluation INSTRUCTION: Let’s continue Activity No. 1. Discern what Market Structure does the given products belong.

31. Questions?