Tuesday April 7, 2015
Agenda
• Turn in Projects• Review of Businesses• Types of
Competition/Profit Notes• Remake Monopoly
Classwork
Homework
• Finish Classwork
Civics and Economics Day 132
Types of Businesses ChartSole Proprietorship
Partnership Corporation Franchise
How many people own the business?
Percent of Businesses in the US?
Advantages
Disadvantages
Examples
TYPES OF COMPETITION IN A MARKET ECONOMY
Why is Economic Competition Important?Every business tries to
provide a product at better price or quality to attract customers and make profit.
This competition gives us better products at a lower price.
Competition helps keep supply and demand balanced.
Types of Business Competition• Monopolies• Natural Monopolies
• Oligopolies• Monopolistic
Competition• Pure Competition
Monopolies
• One single large seller with no close competition and no alternative substitutes• Examples:• Software Companies like
Microsoft, National Football League
Natural MonopolyA monopoly that exists as a
result of high fixed or start-up costs. Also, costs are lower if there is one producer instead of several
Imagine if every telephone or cable company had to put their own wires in the ground/on telephone poles!
Examples: Cable companies, Electric Companies
OligopolyVery similar
products, few sellersFairly inelastic
demand (Doesn’t change regardless of price)
Only the biggest and oldest survive
Businesses are big and equal in size.
Examples: Banks, Car makers,
gasoline retail companies, insurance companies
Monopolistic CompetitionSellers feel they do have
some competitionOne big dominant
company with a few medium or smaller sized companies
Examples: Google Walmart Hotels Starbucks
Pure CompetitionLow barriers to entry
(obstacles that make it difficult to enter a market) Ex: Advertising, high costs,
regulationsMany choicesNo business has
dominance.Examples:
Restaurants, convenience stores, nail salons, professional services (dentists, doctors, etc.)
Monopoly Remake• Pick either Monopolistic Competition,
Oligopoly and Pure Competition and ANSWER IN COMPLETE SENTENCES describing how if Hasboro were to make one of these into a game like Monopoly how the following would be different.
• How would the board be shaped differently?
• How would the way you play be different?
• What type of properties would there be?• What would the pieces look like?• How would you win?
• Monopoly• The Board is square
shaped (For no particular reason)
• Monopoly you take turns, buying properties you land on or paying rent at properties you land on.
• Each property is a chance to make money with either homes or hotels.
• The pieces are inspired by things that contributed to economic success.
• You win buy owning all the pieces and everyone going bankrupt.