Welcome to Economics!

Turn your essay into the boxGrab your notebookFind a seat where you are free from

distractions and be seated when the bell rings.

When ready, come grab entrance quiz from Mr. Talcott

Do Now- “Economic Competition”

Complete the entrance ticket silently and independently

When finished create an entry for “economic competition”

5 minutes

End

Objective of the day:

I can explain the different types of market outcomes in order to analyze the real world impact of market outcomes on prices and consumers.

QOD

WHAT MIGHT HAPPEN IF THERE WAS ONLY ONE GAS STATION IN TOWN?

What is a “market”?

A market is a system of exchange (buying and selling).

You win the game Monopoly by

owning everything and getting rid of

ALL your competition!

Perfect Competition

Perfect competition contains many sellers, who have products which are pretty much the same. It is easy to start up in and each seller has no control over the market price. An example industry in perfect competition is corn.

Perfect CompetitionExample Industries Corn, Wheat, Rice

Number of Sellers Many

Type of Product Identical

Barriers to Entry No barriers

Control over Price No control

Monopoly

Monopolies contain one seller, who have products which are unique. It is nearly impossible to start in and each seller has absolute control over the market price. An example monopoly industry is electricity or water.

Monopolies contain one seller, who have products which are unique. It is nearly impossible to start in and each seller has absolute control over the market price. An example monopoly industry is electricity or water.

MonopolyExample Industries Electricity, Water

ServiceNumber of Sellers One

Type of Product Unique

Barriers to Entry Extremely high barriers

Control over Price Absolute control

Monopolistic Competition

Monopolistic competition contains many sellers, who have products which are slightly different. It is easy to start in and each seller has some control over the market price. An example of an industry with monopolistic competition is restaurants or jeans .

Monopolistic CompetitionExample Industries Jeans, Restaurants

Number of Sellers Many

Type of Product Slightly different

Barriers to Entry No barriers

Control over Price Some control

Oligopoly

Oligopolies contains a few sellers, who have products which are moderately different. It is pretty hard to join in and each seller has high control over the market price. An example of an oligopoly is the cell phone industry .

OligopolyExample Industries Luxury cars, cell phone

serviceNumber of Sellers A few

Type of Product Moderately different

Barriers to Entry Significantly high barriers

Control over Price High control

Which type of competition has only a few sellers?

A. Perfect Competition

B. Monopolistic Competition

C. Oligopoly

D. Monopoly

In this type of market, sellers must sell at whatever is the

market price

A. Perfect CompetitionB. Monopolistic CompetitionC. OligopolyD. Monopoly

Which type of competition is thehardest to start competing in?

A. Perfect CompetitionB. Monopolistic CompetitionC. OligopolyD. Monopoly

Which type of competition has no control over the market

price?

A. Perfect CompetitionB. Monopolistic CompetitionC. OligopolyD. Monopoly

Which type of competition has all the exact same products?

A. Perfect CompetitionB. Monopolistic CompetitionC. OligopolyD. Monopoly

In this type of market there are many sellers, but each product

is slightly different.

A. Perfect CompetitionB. Monopolistic CompetitionC. OligopolyD. Monopoly

With a Partner

Read and annotate the following scenarios: one partner does scenario 1 and 3, the other, 2 and 4.

Code the text using the key below:*- Perfect competition

$-monopoly

^- monopolistic competiton

#- oligopoly

When finished answer the questions in complete sentences in your notebook

20 minutes

End

By yourself

Independently Complete the analysis of real life scenarios Answer all questions in complete sentences

15 minutes

End

By yourself

Choose two real life companies to read about, Answer the questions in your notebook

10 minutes

End

Homework

Create a product or company for each market type.