10.57- introduction to market structures€¦ · marketwatch (on google classroom) 10.57-...
TRANSCRIPT
![Page 1: 10.57- Introduction To Market Structures€¦ · MarketWatch (on Google Classroom) 10.57- Introduction To Market Structures 10.57- Compare and contrast basic characteristics of the](https://reader034.vdocuments.us/reader034/viewer/2022050111/5f4881194105c53eeb6e4a18/html5/thumbnails/1.jpg)
10.57- Introduction To Market Structures
10.57- Compare and contrast basic characteristics of the four market structures.
By: Carter Greene
![Page 2: 10.57- Introduction To Market Structures€¦ · MarketWatch (on Google Classroom) 10.57- Introduction To Market Structures 10.57- Compare and contrast basic characteristics of the](https://reader034.vdocuments.us/reader034/viewer/2022050111/5f4881194105c53eeb6e4a18/html5/thumbnails/2.jpg)
Kickoff:❖ Go to Google Classroom
and complete the assignment“12/13- KO”➢ The Chickens are
Colluding…❖ Roll Call: Favorite Fast
Food
![Page 3: 10.57- Introduction To Market Structures€¦ · MarketWatch (on Google Classroom) 10.57- Introduction To Market Structures 10.57- Compare and contrast basic characteristics of the](https://reader034.vdocuments.us/reader034/viewer/2022050111/5f4881194105c53eeb6e4a18/html5/thumbnails/3.jpg)
Announcements:❖ All Section 10/Unit 4 modules should be
read by now❖ 12/19- Unit 4 Test❖ Knight Time: Monday - Wednesday next week❖ Homeroom: Thursday and Friday
![Page 4: 10.57- Introduction To Market Structures€¦ · MarketWatch (on Google Classroom) 10.57- Introduction To Market Structures 10.57- Compare and contrast basic characteristics of the](https://reader034.vdocuments.us/reader034/viewer/2022050111/5f4881194105c53eeb6e4a18/html5/thumbnails/4.jpg)
Candy and the Markets-
Simulation
![Page 5: 10.57- Introduction To Market Structures€¦ · MarketWatch (on Google Classroom) 10.57- Introduction To Market Structures 10.57- Compare and contrast basic characteristics of the](https://reader034.vdocuments.us/reader034/viewer/2022050111/5f4881194105c53eeb6e4a18/html5/thumbnails/5.jpg)
Let’s fill out the chart based off of our simulation
![Page 6: 10.57- Introduction To Market Structures€¦ · MarketWatch (on Google Classroom) 10.57- Introduction To Market Structures 10.57- Compare and contrast basic characteristics of the](https://reader034.vdocuments.us/reader034/viewer/2022050111/5f4881194105c53eeb6e4a18/html5/thumbnails/6.jpg)
Market Structure Questions❖ Go to Google Classroom and complete the
assignment “Market Structure Questions❖ Use the knowledge you learned from the Module
57 reading and from the Candy Simulation we just completed
❖ Working with the person beside you➢ Collaborate, not divide and conquer
❖ ~20 minutes❖ If you finish early, go ahead and sign up for
MarketWatch (on Google Classroom)
![Page 7: 10.57- Introduction To Market Structures€¦ · MarketWatch (on Google Classroom) 10.57- Introduction To Market Structures 10.57- Compare and contrast basic characteristics of the](https://reader034.vdocuments.us/reader034/viewer/2022050111/5f4881194105c53eeb6e4a18/html5/thumbnails/7.jpg)
10.57- Introduction To Market Structures
10.57- Compare and contrast basic characteristics of the four market structures.
By: Carter Greene
![Page 8: 10.57- Introduction To Market Structures€¦ · MarketWatch (on Google Classroom) 10.57- Introduction To Market Structures 10.57- Compare and contrast basic characteristics of the](https://reader034.vdocuments.us/reader034/viewer/2022050111/5f4881194105c53eeb6e4a18/html5/thumbnails/8.jpg)
4 Market Structures/Types of Competition❖ Competition- struggle between various
producers to win market share➢ Pros:
■ Lower prices, higher quality, innovation❖ Based largely on:
➢ Number of firms➢ Product Differentiation
❖ Perfect (Pure) Competition, Monopolies, Oligopolistic, monopolistic
![Page 9: 10.57- Introduction To Market Structures€¦ · MarketWatch (on Google Classroom) 10.57- Introduction To Market Structures 10.57- Compare and contrast basic characteristics of the](https://reader034.vdocuments.us/reader034/viewer/2022050111/5f4881194105c53eeb6e4a18/html5/thumbnails/9.jpg)
Perfect Competition❖ Many firms with (equally) small market share❖ Identical products → perfect substitutes
➢ Price takers- zero control over price❖ Free entry and exit
➢ Government and other firms can’t keep act to keep others out
❖ NO MARKET POWER
![Page 10: 10.57- Introduction To Market Structures€¦ · MarketWatch (on Google Classroom) 10.57- Introduction To Market Structures 10.57- Compare and contrast basic characteristics of the](https://reader034.vdocuments.us/reader034/viewer/2022050111/5f4881194105c53eeb6e4a18/html5/thumbnails/10.jpg)
Monopoly❖ One firm in an entire industry❖ Unique product
➢ Almost complete control over price❖ High barriers to entry
➢ Resource control➢ Technological superiority➢ Government Power/Copyrights and Patents
■ Incentivises innovation➢ Economies of Scale
■ ATC drops low with high output for products with high TFC
■ Natural Monopolies❖ COMPLETE MARKET POWER
![Page 11: 10.57- Introduction To Market Structures€¦ · MarketWatch (on Google Classroom) 10.57- Introduction To Market Structures 10.57- Compare and contrast basic characteristics of the](https://reader034.vdocuments.us/reader034/viewer/2022050111/5f4881194105c53eeb6e4a18/html5/thumbnails/11.jpg)
Examples Throughout History❖ John D. Rockefeller- Oil❖ Cornelius Vanderbilt- Railroads❖ Andrew Carnegie- Steel❖ James B. Duke- Tobacco❖ Cecil Rhodes- Diamonds
![Page 12: 10.57- Introduction To Market Structures€¦ · MarketWatch (on Google Classroom) 10.57- Introduction To Market Structures 10.57- Compare and contrast basic characteristics of the](https://reader034.vdocuments.us/reader034/viewer/2022050111/5f4881194105c53eeb6e4a18/html5/thumbnails/12.jpg)
Oligopoly- Imperfect Competition❖ Small number of influential firms❖ Products can be the same or
slightly differentiated➢ A lot of influence over price
❖ Highly susceptible to collusion!❖ Barriers to entry (but weaker than
monopoly)➢ Economies of Scale
❖ Measured by concentration ratios and HHI
❖ Some market power
![Page 13: 10.57- Introduction To Market Structures€¦ · MarketWatch (on Google Classroom) 10.57- Introduction To Market Structures 10.57- Compare and contrast basic characteristics of the](https://reader034.vdocuments.us/reader034/viewer/2022050111/5f4881194105c53eeb6e4a18/html5/thumbnails/13.jpg)
Monopolistic- Imperfect Competition❖ Large number of firms❖ Slightly differentiated
product➢ Some influence over price
❖ Relatively free entry and exit in the long-run
![Page 14: 10.57- Introduction To Market Structures€¦ · MarketWatch (on Google Classroom) 10.57- Introduction To Market Structures 10.57- Compare and contrast basic characteristics of the](https://reader034.vdocuments.us/reader034/viewer/2022050111/5f4881194105c53eeb6e4a18/html5/thumbnails/14.jpg)
MarketWatch❖ Go to Google Classroom and sign up for
MarketWatch if you haven’t already❖ Begin to explore the website and check out
the Log you will be filling out for each transaction you make
![Page 15: 10.57- Introduction To Market Structures€¦ · MarketWatch (on Google Classroom) 10.57- Introduction To Market Structures 10.57- Compare and contrast basic characteristics of the](https://reader034.vdocuments.us/reader034/viewer/2022050111/5f4881194105c53eeb6e4a18/html5/thumbnails/15.jpg)
Closure:❖ Go to Google Classroom and complete the
assignment “12/13- Closure”