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Oligopoly Chapter 7  Section 4
Indiana Academic Standards for Economics <ul><li>Standard 3.4 </li></ul><ul><li>Identify the basic characteristics of the ...
Markets 1 2 3 4 Buyers & Sellers Type of Good Enter & Exit Example Name Perfect Competition Many Identical Easy Agricultur...
Objectives <ul><li>What are the characteristics of oligopoly? </li></ul><ul><li>What are some examples of oligopoly? </li>...
Question <ul><li>Can you write the name of  5  U.S. CAR MANUFACTURERS? </li></ul><ul><li>General Motors </li></ul><ul><li>...
US Automakers <ul><li>GENERAL  </li></ul><ul><li>MOTORS </li></ul><ul><li>Buick </li></ul><ul><li>Cadillac </li></ul><ul><...
3 Characteristics of an OLIGOPOLY <ul><li>1. FEW  Sellers </li></ul><ul><li>2. IDENTICAL  or Slightly  Different Products ...
<ul><li>Cartel Agreement: </li></ul><ul><li>Agreement specifying that the firms will act in a way to reduce competition am...
<ul><li>What is “ competition ”? </li></ul><ul><li>Which of the 4 Market Structures has the most competition?  (PC-MC-O-M)...
Market Structure Perfect Competition Monopoly Monopolistic Competition Oligopoly # of Sellers Many One Many Few Type of Pr...
Assessment <ul><li>What are the characteristics of oligopoly? </li></ul><ul><li>What are some examples of oligopoly? </li>...
U.S. Automakers <ul><li>AM General  (not sold to private individuals; similar vehicles are sold to ordinary consumers as  ...
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  1. 1. Oligopoly Chapter 7 Section 4
  2. 2. Indiana Academic Standards for Economics <ul><li>Standard 3.4 </li></ul><ul><li>Identify the basic characteristics of the four market structures: perfect competition, monopoly, oligopoly, and monopolistic competition. </li></ul>
  3. 3. Markets 1 2 3 4 Buyers & Sellers Type of Good Enter & Exit Example Name Perfect Competition Many Identical Easy Agriculture & Stock Market Monopoly One Seller Unique Hard Utilities Monopolistic Competition Many Different Easy Clothing Fast Food
  4. 4. Objectives <ul><li>What are the characteristics of oligopoly? </li></ul><ul><li>What are some examples of oligopoly? </li></ul><ul><li>Are oligopolies price takers or price searchers? </li></ul><ul><li>What are cartel agreements? </li></ul>
  5. 5. Question <ul><li>Can you write the name of 5 U.S. CAR MANUFACTURERS? </li></ul><ul><li>General Motors </li></ul><ul><li>Ford Motor Company </li></ul><ul><li>Daimler Chrysler Corporation </li></ul><ul><li>? </li></ul><ul><li>ALL ARE OLIGOPOLIES </li></ul>
  6. 6. US Automakers <ul><li>GENERAL </li></ul><ul><li>MOTORS </li></ul><ul><li>Buick </li></ul><ul><li>Cadillac </li></ul><ul><li>Chevrolet </li></ul><ul><li>GMC </li></ul><ul><li>Holden </li></ul><ul><li>Hummer </li></ul><ul><li>Opel </li></ul><ul><li>Pontiac </li></ul><ul><li>Saab </li></ul><ul><li>Saturn </li></ul><ul><li>Vauxhall </li></ul><ul><li>FORD </li></ul><ul><li>Lincoln </li></ul><ul><li>Mercury </li></ul><ul><li>Jaguar </li></ul><ul><li>Land Rover </li></ul><ul><li>Volvo </li></ul><ul><li>Mazda </li></ul><ul><li>DAIMLER </li></ul><ul><li>CHRYSLER </li></ul><ul><li>Chrysler </li></ul><ul><li>Dodge </li></ul><ul><li>Jeep </li></ul><ul><li>AM GENERAL </li></ul><ul><li>PANOZ </li></ul><ul><li>SALEEN </li></ul><ul><li>STUDEBAKER </li></ul><ul><li>VECTOR </li></ul>
  7. 7. 3 Characteristics of an OLIGOPOLY <ul><li>1. FEW Sellers </li></ul><ul><li>2. IDENTICAL or Slightly Different Products </li></ul><ul><li>3. Significant BARRIERS to Entry to or Exit from the Market </li></ul>
  8. 8. <ul><li>Cartel Agreement: </li></ul><ul><li>Agreement specifying that the firms will act in a way to reduce competition among them </li></ul><ul><li>Example: </li></ul><ul><li>OPEC </li></ul>
  9. 9. <ul><li>What is “ competition ”? </li></ul><ul><li>Which of the 4 Market Structures has the most competition? (PC-MC-O-M) </li></ul><ul><li>Perfect Competition </li></ul><ul><li>(Keeping an equal playing field) </li></ul>
  10. 10. Market Structure Perfect Competition Monopoly Monopolistic Competition Oligopoly # of Sellers Many One Many Few Type of Product Identical Unique Slight Differnt Identical or slight diff Barriers To Entry None Extremely High None Significantly High Price Control None Much Not as Much Not as Much Examples Corn, Wheat, Stock Market Utilities Clothing, Meals Cars, Cereal
  11. 11. Assessment <ul><li>What are the characteristics of oligopoly? </li></ul><ul><li>What are some examples of oligopoly? </li></ul><ul><li>Are oligopolies price takers or price searchers? </li></ul><ul><li>What are cartel agreements? </li></ul>
  12. 12. U.S. Automakers <ul><li>AM General (not sold to private individuals; similar vehicles are sold to ordinary consumers as Hummers ) </li></ul><ul><li>DaimlerChrysler (Though headquartered in Stuttgart, Germany, DaimlerChrysler is sometimes seen as an American car manufacturer.) </li></ul><ul><ul><li>Jeep </li></ul></ul><ul><ul><li>Chrysler </li></ul></ul><ul><ul><li>Dodge </li></ul></ul><ul><li>General Motors </li></ul><ul><ul><li>Buick </li></ul></ul><ul><ul><li>Cadillac </li></ul></ul><ul><ul><li>Chevrolet </li></ul></ul><ul><ul><li>GMC </li></ul></ul><ul><ul><li>Hummer </li></ul></ul><ul><ul><li>Pontiac </li></ul></ul><ul><ul><li>Saturn </li></ul></ul><ul><li>Ford </li></ul><ul><ul><li>Lincoln </li></ul></ul><ul><ul><li>Mercury </li></ul></ul><ul><li>Panoz </li></ul><ul><li>Saleen </li></ul><ul><li>Studebaker Motor Company </li></ul><ul><li>Vector Supercars </li></ul>
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