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Economics Chapter 7 Packet

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9 views3 pages

Economics Chapter 7 Packet

Uploaded by

Kevin Kalfass
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Economics Chapter 7: Market Structures 6-8 days; 4 column chart would be helpful graphic organizer

Big Ideas: Four types of market structures


Topics
7-1: Perfectly competitive markets are characterized by many different firms who have no price control, offer
identical products, have free entry and exit to and from the market, no advertising, and minimal economic
profits.
7-2: Monopolies are characterized by a single seller who has almost total price control, offering one unique
product in a market with extensive barriers to entry, utilizing lobbying and some advertising, usually resulting
in significant economic profits. Monopolies benefit from economies of scale and, in some cases, price
discrimination.
7-3: Monopolistic competition is a market with many firms selling differentiated products, with limited barriers
to entry, extensive advertising, and some price control. Oligopolies are markets in which 2-6 firms control at
least 80% of the market sales. Oligopolistic firms may sell identical or differentiated products, have more
extensive barriers to entry, usually have more limited advertising, and price control is often dependent upon
other firms within the market.
7-4: The government may regulate competition due to predatory pricing or to preserve incentives to benefit
consumers. The government may remove regulation to allow for greater competition by removing barriers to
entry or eliminating price controls.
Objective(s)
7-1: Identify examples of perfect competition.
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_ Describe the barriers that make it difficult to enter a free market.
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_
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_ Explain how prices and output are determined in a perfectly competitive market.
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__7-2: Explain the characteristics of a monopoly and give examples.
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_ Discuss how a government can establish a monopoly with a patent.
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__Explain how monopolies use price discrimination.
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_7-3: Explain the characteristics of monopolistic competition.
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_ Understand how businesses compete in four ways other than price.
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_ Describe the characteristics of oligopolies.
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_ Understand collusion and price fixing.
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_7-4: Explain how firms try to gain control over a market.
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_ Describe how the government protects competition.
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_ Describe deregulation, its advantages, and its disadvantages.
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__
Essential Questions:
How does competition affect consumer choices?
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_

Vocabulary
Competition ( perfect and imperfect) -___________________________________________________________
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_
barrier to entry -
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_ economies of scale -
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_ cartel -
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__ monopoly – (natural, government too) -
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__ commodity-
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_ price discrimination-
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_ nonprice competition-
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_ oligopoly-
_________________________________________________________________________________
_________________________________________________________________________________________
_ start-up cost-
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_ deregulation-
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_
patent- ___________________________________________________________________________________
franchise- _________________________________________________________________________________
_________________________________________________________________________________________
_license-
___________________________________________________________________________________
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_
oligopoly-
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collusion- _________________________________________________________________________________
_________________________________________________________________________________________
_
cartel- ____________________________________________________________________________________

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