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market-structure.pptx for Applied Economics
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- 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?
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- 4. Learning Competencies: Atthe 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 •ActivityNo. 2: “Market Structure Simulation” Price Range: 25 cents to 3 pesos
- 7. MARKET STRUCTURES 1. Whatis 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 - largenumber of firms
- 9. MARKET STRUCTURES Perfect Competition - largenumber of firms
- 10. MARKET STRUCTURES Perfect Competition - largenumber of firms - identical/ homogenous
- 11. MARKET STRUCTURES Perfect Competition - largenumber of firms - identical/ homogenous - Free entry/ exit
- 12. MARKET STRUCTURES Perfect Competition - largenumber 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?
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- 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 - Singleseller; 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 - Stillhas 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 - fewlarge, 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 structuresrefer 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.
Editor's Notes
- #1 1. What are 3 the price elasticity of demand? 2. What determines own price? Cross Price? Income? What if the result of your own price is -0.46, how would you interpret that? Negative relship, inelastic Cross price ? Price of related products , complementary inelastic Good to know that you remember all those.
- #5 I will distribute worksheets for you to answer. You just determine the top 3 brands that you prefer in each category. I will give you 2 minutes to answer
- #6 Group 1 (1student)– not talk to anyone 2 (3 students)- allowed to talk to each other but not to ither groups 3 (3 students)- not allowed to talk 4. (the rest of the group) Allowed to talk to each other After… Can you gues which among the 4 groups represented pc? Monopoly? MC? Oli?
- #14 1. Opposite of pc is MONO 2.Based on our activity, how can you describe MONO? 3. Can you still call mono a market even it has only one seller?
- #22 Other examples: shampoo, shoes, pants, coffee