Download as PDF, PPTX
Market Structure
- 1. Market Structure 12.2.8 therole of profit as the incentive to the entrepreneurs in a market economy
- 2. Market Structures • Whatis the primary aim/goal of businesses? • To maximize profits • What is competition? • Striving against others to reach an objective
- 3. 4 Types ofMarket Structure 1. Pure/Perfect Competition – Large number of buyers and sellers – Identical product – Well informed buyers and sellers More Competition Less Competition
- 4. Pure/Perfecct Competition Many buyer/sellers+ Identical Products QuickTime™ and a TIFF(Uncompressed) decompressor are needed to see this picture.
- 5. Monopolistic Competition • Meetsall condition of perfect competition except for identical products. – Product differentiation • Monopolistic competitors use nonprice competition – Advertising, giveaways, or other promotions More Competition Less Competition
- 6. Monopolistic Competition Same aspure competition except for product differentiation Gap Levis Lucky
- 7. Monopolistic Competition Are theseshampoos/conditioners different? Pantene $14.50 Frederic Fekkai $54
- 8. Monopolistic Competition Are thesemascaras different? Maybelline Sisley $4 $43
- 9. Oligopoly • A fewvery large sellers dominate the industry • Oligopolists act independently by lowering prices soon after the first seller announces the cut • Collusion: formally agree to set prices • Engage in price wars More Competition Less Competition
- 10.
- 11. Oligopoly Few producers controlsupply and price
- 12. Coca-Cola Classic • Coca-Colaclassic • Sprite • Dasani • Barq's • Dannon • Nestea • Rockstar • Evian • Fanta • Fresca • Minute Maid • Mr. Pibb • Powerade • Seagrams Ginger Ale & Mixers • TAB
- 13. Pepsi-co • Aquafina • Pepsi •Mountain Dew • Sierra Mist • Sobe • Lipton Brisk Tea • MUG Root Beer • Slice • Gatorade • Dole Juice • Tropicana
- 14. Cadbury Schweppes • 7Up • Canada Dry • Clamato • Dr Pepper • Hawaiian Punch • Mott's • Orangina • Snapple
- 15.
- 16.
- 17. General Motors • Chevrolet •Buick • Pontiac • GMC • Saturn • Hummer • SAAB • Cadillac
- 18. Monopoly • Only oneseller of a particular product • Few monopolies
- 19. Monopoly More Competition LessCompetition • One seller dominates the market with no close substitutes
- 20. Monopoly • Natural Monopoly- efficient production by a single supplier
- 21. Monopoly • Geographic Monopoly -small town
- 22. Monopoly 1. Technological Monopoly -new invention – Patent: exclusive right for 17 years Segway
- 23. Monopoly 1. Technological Monopoly -new invention – Copyright: lifetime + 50 years This telecast is copyrighted by the NFL for the private use of our audience. Any other use of this telecast or of any pictures, descriptions, or accounts of the game without the NFL’s consent, is prohibited.
- 24. Monopoly 1. Government Monopoly - governmentowned businesses