Market structure

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for CHMSC LAB SCHOOL-YEAR IV STUDENTS.
by:Mrs. Anapi

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Market structure

  1. 1. Market Structure<br /><ul><li>Perfect Competition
  2. 2. Pure Monopoly</li></li></ul><li>Market structure<br />General environment wherein the forces of supply and demand interact<br /> Pure Competition<br /> Monopoly and Monopsonomy<br />Oligopoly<br /> Monopolistic Competition <br />
  3. 3. Review<br />Perfect Competition<br />Characteristics:<br />Free market<br />Large no. of buyers & sellers<br />Homogeneous product<br />Free mobility of resources<br />Perfect knowledge<br />Ideal Set-up for efficient allocation of resources, only some of its conditions are hard to meet<br />
  4. 4. Pure Monopoly<br />A market structure with a single producer / seller of a commodity/service<br />No direct competitor<br />Can block the entry of resources and firms in the industry (monopolistic power)<br />Not free; No direct Competitor<br />Pure Monopoly<br />
  5. 5. Has indirect competitors<br />Indirectly competes with other merchandise<br /><ul><li>Ceneco indirectly competes with the producers of food, clothing and shelter</li></ul>Indirectly competes with imperfect or near substitutes<br /><ul><li>Cenecoindirectly competes with other forms of energy</li></ul>Pure Monopoly<br />
  6. 6. Monopolies arise due to various factors<br />Pure Monopoly<br />
  7. 7. M O N O P S O N Y<br /><ul><li>Single buyer in the market</li></ul>dominant effect on the supply<br /> limits the amount of product it will buy<br /> charge a lower price<br />Pure Monopoly<br />
  8. 8. O l i g o p o l y<br />Industry is dominated by a small number of suppliers<br />Product is either differentiated or undifferentiated<br />Collusion – secret agreement among sellers<br />independent action may lead to destructive competition<br />
  9. 9. Cartel - an alliance of business companies formed to control production, competition, and prices<br /> to monopolize market - cartel becomes a single seller or producer of the product of an industry<br /> follows the leadership of low-cost firm or dominant firm which sets the market price<br /> member firms engage in non-price competition (advertisement, packaging and other sales devices)<br />Oligopoly<br />
  10. 10. Monopolistic Competition<br />Elements are of competition and monopoly<br />Products are differentiated through advertisement and marketing technique<br /> shampoos <br />
  11. 11. Assignment<br />On a short bond paper, paste a clipping of a certain product.<br />Identify the Market structure the product or service belongs to and explain why.<br />*individual work*<br />Pass Tomorrow – Dec. 1, 2010<br />MERRY CHRISTMAS!<br />
  12. 12. Q U I Z<br />

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