Your SlideShare is downloading. ×
0
Demand &Supply<br />COMPETITIVE MARKETS<br />created for:<br />IB Economics<br />building on the work of:<br />Jason Welke...
The Market<br />
market<br />The Nature of Markets<br />
a place where buyers and sellers come together and exchange goods &services<br />market<br />The Nature of Markets<br />
like the butcher, the grocerystore, or the internet<br />market<br />The Nature of Markets<br />
they can be local, national, and also international<br />market<br />The Nature of Markets<br />
they can be local, national, and also international<br />market<br />Can you give an example of each type of market?<br />...
they fall into two categories:<br />productmarketsor<br />resourcemarket<br />market<br />The Nature of Markets<br />
product market<br />The Nature of Markets<br />
is the purchase of consumer goods & services directly from the producers<br />product market<br />The Nature of Markets<br />
product market<br />like a computer from<br />The Nature of Markets<br />
product market<br />or an <br />The Nature of Markets<br />
product market<br />from a farmer<br />The Nature of Markets<br />
resource market<br />The Nature of Markets<br />
is the purchase of the factors of production: land, labor, capital, and entrepreneurship by businesses of individuals and ...
resource market<br />like trees from a family owning a forest<br />The Nature of Markets<br />
CompetitiveMarkets<br />
is one with a large numbers of buyers and sellers, limiting the power of a single firm<br />competitivemarkets<br />The Na...
they bring about diversity of goods, efficiencies, and a general greater wealth<br />competitivemarkets<br />The Nature of...
markets are “free” when they can openly attempt to win business away from others<br />competitivemarkets<br />The Nature o...
Market Structures<br />
4 types of market structure:<br />market structures<br />The Nature of Markets<br />
4 types of market structure:<br />monopoly| oligopolymonopolistic competition perfect competition<br />market structures<b...
4 types of market structure:<br />monopoly | oligopolymonopolistic competition perfect competition<br />market structures<...
4 types of market structure:<br />monopoly | oligopolymonopolistic competition perfect competition<br />market structures<...
4 types of market structure:<br />monopoly | oligopolymonopolistic competition perfect competition<br />market structures<...
4 criteria are used to categorize<br /># of firms | firm’s level of power | product differentiation between firms | ease o...
4 criteria are used to categorize<br /># of firms | firm’s level of power| product differentiation between firms | ease of...
4 criteria are used to categorize<br /># of firms | firm’s level of power| product differentiation between firms| ease of ...
4 criteria are used to categorize<br /># of firms | firm’s level of power| product differentiation between firms|ease of e...
perfect competition<br />The Nature of Markets<br />
very few firms<br />perfect competition<br />The Nature of Markets<br />
very few firms<br />firms don’t influence supply<br />perfect competition<br />The Nature of Markets<br />
very few firms<br />firms don’t influence supply<br />firms make identical products<br />perfect competition<br />The Natu...
very few firms<br />firms don’t influence supply<br />firms make identical products<br />entry & exit easy<br />perfect co...
is quite theoretical, though commodities markets(such as corn, wheat, etc.) do come close<br />perfect competition<br />Th...
monopolistic competition<br />The Nature of Markets<br />
many firms<br />monopolistic competition<br />The Nature of Markets<br />
many firms<br />firm’s decisions barely effect market<br />monopolistic competition<br />The Nature of Markets<br />
many firms<br />firm’s decisions barely effect market<br />relatively different <br />goods<br />monopolistic competition<...
relatively low barriers to entry<br />monopolistic competition<br />The Nature of Markets<br />
monopolistic competition<br />The Nature of Markets<br />Can you give an example of a type of company that would fit this ...
oligopoly<br />The Nature of Markets<br />
few dominant firms<br />oligopoly<br />The Nature of Markets<br />
few dominant firms<br />significant control over price<br />oligopoly<br />The Nature of Markets<br />
few dominant firms<br />significant control over price<br />same or different products<br />oligopoly<br />The Nature of M...
few dominant firms<br />significant control over price<br />same or different products<br />barrier to entry high<br />oli...
few dominant firms<br />significant control over price<br />same or different products<br />barrier to entry high<br />oli...
oligopoly<br />The Nature of Markets<br />What real-world firms represent an oligopoly?<br />
monopoly<br />The Nature of Markets<br />
only one firm<br />monopoly<br />The Nature of Markets<br />
only one firm<br />firm sells to whole market<br />monopoly<br />The Nature of Markets<br />
only one firm<br />firm sells to whole market<br />no substitute products exist<br />monopoly<br />The Nature of Markets<b...
only one firm<br />firm sells to whole market<br />no substitute products exist<br />high barrier to entry<br />monopoly<b...
market structure & power<br />The Nature of Markets<br />most market power<br />monopoly<br />oligopoly competition<br />l...
Upcoming SlideShare
Loading in...5
×

Competitive markets demand and supply

1,044

Published on

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,044
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
41
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Transcript of "Competitive markets demand and supply"

  1. 1. Demand &Supply<br />COMPETITIVE MARKETS<br />created for:<br />IB Economics<br />building on the work of:<br />Jason Welker<br />
  2. 2. The Market<br />
  3. 3. market<br />The Nature of Markets<br />
  4. 4. a place where buyers and sellers come together and exchange goods &services<br />market<br />The Nature of Markets<br />
  5. 5. like the butcher, the grocerystore, or the internet<br />market<br />The Nature of Markets<br />
  6. 6. they can be local, national, and also international<br />market<br />The Nature of Markets<br />
  7. 7. they can be local, national, and also international<br />market<br />Can you give an example of each type of market?<br />The Nature of Markets<br />
  8. 8. they fall into two categories:<br />productmarketsor<br />resourcemarket<br />market<br />The Nature of Markets<br />
  9. 9. product market<br />The Nature of Markets<br />
  10. 10. is the purchase of consumer goods & services directly from the producers<br />product market<br />The Nature of Markets<br />
  11. 11. product market<br />like a computer from<br />The Nature of Markets<br />
  12. 12. product market<br />or an <br />The Nature of Markets<br />
  13. 13. product market<br />from a farmer<br />The Nature of Markets<br />
  14. 14. resource market<br />The Nature of Markets<br />
  15. 15. is the purchase of the factors of production: land, labor, capital, and entrepreneurship by businesses of individuals and families<br />resource market<br />The Nature of Markets<br />
  16. 16. resource market<br />like trees from a family owning a forest<br />The Nature of Markets<br />
  17. 17. CompetitiveMarkets<br />
  18. 18. is one with a large numbers of buyers and sellers, limiting the power of a single firm<br />competitivemarkets<br />The Nature of Markets<br />
  19. 19. they bring about diversity of goods, efficiencies, and a general greater wealth<br />competitivemarkets<br />The Nature of Markets<br />
  20. 20. markets are “free” when they can openly attempt to win business away from others<br />competitivemarkets<br />The Nature of Markets<br />
  21. 21. Market Structures<br />
  22. 22. 4 types of market structure:<br />market structures<br />The Nature of Markets<br />
  23. 23. 4 types of market structure:<br />monopoly| oligopolymonopolistic competition perfect competition<br />market structures<br />The Nature of Markets<br />
  24. 24. 4 types of market structure:<br />monopoly | oligopolymonopolistic competition perfect competition<br />market structures<br />The Nature of Markets<br />
  25. 25. 4 types of market structure:<br />monopoly | oligopolymonopolistic competition perfect competition<br />market structures<br />The Nature of Markets<br />
  26. 26. 4 types of market structure:<br />monopoly | oligopolymonopolistic competition perfect competition<br />market structures<br />The Nature of Markets<br />
  27. 27. 4 criteria are used to categorize<br /># of firms | firm’s level of power | product differentiation between firms | ease of entry and exit<br />market structures<br />The Nature of Markets<br />
  28. 28. 4 criteria are used to categorize<br /># of firms | firm’s level of power| product differentiation between firms | ease of entry and exit<br />market structures<br />The Nature of Markets<br />
  29. 29. 4 criteria are used to categorize<br /># of firms | firm’s level of power| product differentiation between firms| ease of entry and exit<br />market structures<br />The Nature of Markets<br />
  30. 30. 4 criteria are used to categorize<br /># of firms | firm’s level of power| product differentiation between firms|ease of entry and exit<br />market structures<br />The Nature of Markets<br />
  31. 31. perfect competition<br />The Nature of Markets<br />
  32. 32. very few firms<br />perfect competition<br />The Nature of Markets<br />
  33. 33. very few firms<br />firms don’t influence supply<br />perfect competition<br />The Nature of Markets<br />
  34. 34. very few firms<br />firms don’t influence supply<br />firms make identical products<br />perfect competition<br />The Nature of Markets<br />
  35. 35. very few firms<br />firms don’t influence supply<br />firms make identical products<br />entry & exit easy<br />perfect competition<br />The Nature of Markets<br />
  36. 36. is quite theoretical, though commodities markets(such as corn, wheat, etc.) do come close<br />perfect competition<br />The Nature of Markets<br />
  37. 37. monopolistic competition<br />The Nature of Markets<br />
  38. 38. many firms<br />monopolistic competition<br />The Nature of Markets<br />
  39. 39. many firms<br />firm’s decisions barely effect market<br />monopolistic competition<br />The Nature of Markets<br />
  40. 40. many firms<br />firm’s decisions barely effect market<br />relatively different <br />goods<br />monopolistic competition<br />The Nature of Markets<br />
  41. 41. relatively low barriers to entry<br />monopolistic competition<br />The Nature of Markets<br />
  42. 42. monopolistic competition<br />The Nature of Markets<br />Can you give an example of a type of company that would fit this description?<br />
  43. 43. oligopoly<br />The Nature of Markets<br />
  44. 44. few dominant firms<br />oligopoly<br />The Nature of Markets<br />
  45. 45. few dominant firms<br />significant control over price<br />oligopoly<br />The Nature of Markets<br />
  46. 46. few dominant firms<br />significant control over price<br />same or different products<br />oligopoly<br />The Nature of Markets<br />
  47. 47. few dominant firms<br />significant control over price<br />same or different products<br />barrier to entry high<br />oligopoly<br />The Nature of Markets<br />
  48. 48. few dominant firms<br />significant control over price<br />same or different products<br />barrier to entry high<br />oligopoly<br />The Nature of Markets<br />
  49. 49. oligopoly<br />The Nature of Markets<br />What real-world firms represent an oligopoly?<br />
  50. 50. monopoly<br />The Nature of Markets<br />
  51. 51. only one firm<br />monopoly<br />The Nature of Markets<br />
  52. 52. only one firm<br />firm sells to whole market<br />monopoly<br />The Nature of Markets<br />
  53. 53. only one firm<br />firm sells to whole market<br />no substitute products exist<br />monopoly<br />The Nature of Markets<br />
  54. 54. only one firm<br />firm sells to whole market<br />no substitute products exist<br />high barrier to entry<br />monopoly<br />The Nature of Markets<br />
  55. 55. market structure & power<br />The Nature of Markets<br />most market power<br />monopoly<br />oligopoly competition<br />least market power<br />monopolistic competition<br />perfect competition<br />
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×