 Market
structures are economic models that
measure how much___________there is in an
industry.
 Competition
 List
the 4 market structures, in order, from
the most competitive to the least
competitive.
 Perfect
Competition
 Monopolistic Competition
 Oligopoly
 Monopoly
 Which
market structure sells only
standardized products?
 Which
market structure sells only
standardized products?
 Perfect
competition
 Corn
is sometimes referred to as an example
of a perfectly competitive industry. Name
one way in which the corn market doesn’t fit
the definition of perfect competition.
 Corn
is sometimes referred to as an example
of a perfectly competitive industry. Name
one way in which the corn market doesn’t fit
the definition of perfect competition.
 Not
a truly standardized product
 People may have preference from one
farmer’s crop to another due to fertilizer,
pesticides, etc.
 The
US Postal Service is an example of a
___________monopoly.
 The
US Postal Service is an example of a
Government monopoly.
 The
Green Bay Packers are an example of a
___________monopoly.
 The
Green Bay Packers are an example of a
geographic monopoly.
 The
practice of setting prices below cost for
a time to drive smaller producers out of
business is called…
 The
practice of setting prices below cost for
a time to drive smaller producers out of
business is called…
 Predatory pricing
 If
Burger King and McDonald’s agree not to
locate their restaurants in the same town,
this unfair business tactic is called……..
 Market
allocation
 In
this market structure, consumers have all
the information about the product and never
are disappointed in the quality of the
product they purchase.
 Perfect
competition
 In
this market structure, there are no close
substitutes for the good.
 Monopoly
 Give
2 examples of standardized products.
 Give
2 examples of standardized products.
 Eggs, milk, wheat, flour, corn, meat, salt,
gas
A
monopoly that exists because a firm
controls an invention is called….
A
monopoly that exists because a firm
controls an invention is called….
 Technological monopoly
 Few
sellers and many buyers is an example of
what kind of market structure?
 Few
sellers and many buyers is an example of
what kind of market structure?
 Oligopoly
 Restaurants,
clothing manufacturers and
bread producers are examples of what type
of market structure?
 Restaurants,
clothing manufacturers and
bread producers are examples of what type
of market structure?
 Monopolistic competition
 Auto
companies, soda companies and movie
studios are examples of what kind of market
structure?
 Auto
companies, soda companies and movie
studios are examples of what kind of market
structure?
 Oligopoly
 Because
perfect competitors have no control
over the price of their product, we say that
they are price_______________.
 Because
perfect competitors have no control
over the price of their product, we say that
they are price takers.
 I’m
a manufacturer of potato chips. What
are 2 ways that I could differentiate my
product?
 Advertising,
 New
flavors
 Better nutrition
 Packaging
 What
type of monopoly exists due to
economies of scale?
 Natural
monopoly
 How
does an inventor protect his product
and therefore maintain a technological
monopoly?
 How
does an inventor protect his product
and therefore maintain a technological
monopoly?
 With
a patent