Grade

School NAIC SENIOR HIGH SCHOOL 11

Level
Learning
LESSON Teacher LESTER PUNONGBAYAN APPLIED ECO
Area
EXEMPLAR
Teaching Semester/ 2nd Sem/ 3rd
January 24, 2024/ WEEK 6
Date Quarter Quarter
Time ALS HUMSS: 7:00 – 9:00 AM

I. I. OBJECTIVES In this lesson, the students are expected to:

1. Identify the human origins and the capacity for culture
2. Determine the role of culture in human adaptation
3. Discuss cultural, social, political, and economic practices.
4. Analyze the significance of cultural, social, political, and economic symbols
and practices
A. Content The learner demonstrates an understanding of economics as an applied science and
Standards its utility in addressing the economic problems of the country
B.
The learners shall be able to analyze and propose solution/s to the economic
Performance
problems using the principles of applied economics
Standards
Differentiate various market structures in terms of:
C. Most a. number of sellers
Essential b. types of products
Learning c. entry/exit to market
Competencies d. pricing power
e. others
Market structure
II. CONTENT

III. LEARNING
RESOURCES
A. References DEPED CALABARZON Learning Module 1 (1-9)
1. Teacher’s
N/A
Guide pages
2. Learner’s
Materials TV/Laptop/ Chalkboard
pages
3. Textbook
N/A
pages
4. Additional
Materials
from
Learning N/A
Resource (LR)

portal
B. List of
Learning
Resources for
N/A
Developmenta
l and
Engagement
Activities]
IV.
PROCEDURE
S
A. Pre-assessment:
Introduction Directions: Identify what is asked in each item. Write the letter of the correct
answer in your notebook.
1. Which of the following is not a type of market structure? 1
A. Competitive monopoly
B. Oligopoly
C. Perfect competition
D. All of the above are types of market structures.
2. If the market demand curve for a commodity has a negative slope, then the
market structure must be
A. perfect competition.
B. monopoly.
C. imperfect competition.
D. The market structure cannot be determined from the information given.
3. If a firm sells its output on a market that is characterized by many sellers and
buyers, a homogeneous product, unlimited long-run resource mobility, and
perfect knowledge, then the firm is a:
A. a monopolist.
B. an oligopolist.
C. a perfect competitor.
D. a monopolistic competitor.
4. If a firm sells its output on a market that is characterized by a single seller
and many buyers of a homogeneous product for which there are no close
substitutes and barriers to long-run resource mobility, then the firm is
A. a monopolist.
B. an oligopolist.
C. a perfect competitor.
D. a monopolistic competitor.
5. If a firm sells its output on a market that is characterized by many sellers and
buyers, a differentiated product, and unlimited long-run resource mobility, then
the firm is
A. a monopolist.
B. an oligopolist.
C. a perfect competitor.
D. a monopolistic competitor.
6. If a firm sells its output on a market that is characterized by few sellers and
many buyers and limited long-run resource mobility, then the firm is
A. a monopolist.
B. an oligopolist.
C. a perfect competitor.
D. a monopolistic competitor.
7. If one perfectly competitive firm increases its level of output, market supply
A. will increase and market price will fall.
B. will increase and market price will rise.
C. and market price will both remain constant.
D. will decrease and market price will rise.
8. Which of the following markets comes close to satisfying the assumptions of
a perfectly competitive market structure?
A. The stock market.
B. The market for agricultural commodities such as wheat or corn.
C. The market for petroleum and natural gas.
D. All of the above come close to satisfying the assumptions of perfect
competition.
9. A perfectly competitive firm should reduce output or shut down in the short
run if market price is equal to marginal cost and price is
 A. greater than average total cost.
B. less than average total cost.
C. greater than average variable cost.
D. less than average variable cost.
B. Market Structure: An Overview
Development Market structure refers to the characteristics and organization of a market, influencing
how firms in that market interact, how products are priced, and how goods and
services are allocated. It shapes the behavior of firms, the level of competition, and the
degree of consumer choice. Understanding market structures helps to analyze how
businesses operate, how market prices are set, and how economic welfare is
distributed across society.
There are several types of market structures, each with its own set of characteristics.
The four main market structures are:
1. Perfect Competition
2. Monopolistic Competition
3. Oligopoly
4. Monopoly
1. Perfect Competition
Key Characteristics:
 Number of Sellers: In perfect competition, there are many sellers in the
market. Each seller has a very small share of the market, and none can
influence the overall market price.
 Types of Products: The products sold by all firms in a perfectly competitive
market are homogeneous (identical). Consumers do not differentiate between
products from different sellers.
 Entry and Exit: There are no barriers to entry or exit. New firms can enter the
market freely, and existing firms can leave without any significant costs.
 Pricing Power: Firms are price takers, meaning they must accept the market
price determined by the forces of supply and demand. They cannot set their
own prices.
 Examples: Agricultural markets (e.g., wheat, corn), where products are largely
indistinguishable and many firms participate.
Market Behavior:
 Since firms sell identical products and there is free entry and exit, competition
is high.
 Firms have no control over prices. If they try to charge more than the market
price, consumers will simply buy from other firms.
 The goal of firms is to produce efficiently at the lowest possible cost, which is
encouraged by the constant competition.
2. Monopolistic Competition
Key Characteristics:
 Number of Sellers: There are many sellers, but fewer than in perfect
competition. Each firm has a small market share.
 Types of Products: Products are differentiated, meaning each firm’s product
is slightly different from the others. This can be through branding, quality,
features, or customer service.
 Entry and Exit: Barriers to entry are low, making it relatively easy for new
firms to enter and exit the market.
 Pricing Power: Firms have some degree of pricing power due to product
differentiation. They can set prices higher than in perfect competition, but the
degree of control is limited by competition.
 Examples: Fast food restaurants, clothing brands, and smartphones. These
markets have many firms offering similar but slightly different products.
Market Behavior:
 Product differentiation leads firms to compete not only on price but also on
features, quality, and branding. Advertising and customer loyalty play
 significant roles in monopolistic competition.
 Despite differentiation, if one firm raises its prices too high, consumers can
switch to a competitor, which keeps prices within a reasonable range.
3. Oligopoly
Key Characteristics:
 Number of Sellers: Oligopoly markets are dominated by a small number of
large firms. These firms control the majority of the market share, but they still
compete against each other.
 Types of Products: The products in an oligopoly can be either homogeneous
(like steel or oil) or differentiated (like cars or smartphones).
 Entry and Exit: High barriers to entry make it difficult for new firms to enter
the market. Barriers may include high capital requirements, economies of
scale, and control over essential resources.
 Pricing Power: Firms in an oligopoly have significant pricing power but must
consider the actions of their competitors when setting prices. Firms may
engage in price leadership or tacit collusion, where they cooperate indirectly
to set prices.
 Examples: The automobile industry (e.g., Ford, Toyota, and Honda), the airline
industry, and major tech firms like Google, Apple, and Microsoft.
Market Behavior:
 Interdependence is a key feature of oligopolies. The actions of one firm (e.g.,
price changes, marketing campaigns) often prompt reactions from other firms in
the market.
 Firms may engage in non-price competition (e.g., advertising, product
innovation) to differentiate their offerings, reducing direct price competition.
 Oligopolies may also engage in price-fixing or collusion (illegal in many
jurisdictions), where firms agree on prices or production levels to avoid
competition.
4. Monopoly
Key Characteristics:
 Number of Sellers: A monopoly is a market with only one seller that controls
the entire supply of a product or service.
 Types of Products: The product or service is typically unique, with no close
substitutes available. This means that consumers have no choice but to
purchase from the monopolist.
 Entry and Exit: High barriers to entry prevent new firms from entering the
market. These barriers can include legal restrictions (e.g., patents), control of
key resources, or massive capital requirements.
 Pricing Power: The monopolist has significant pricing power, as it can set
the price for its product or service. There are no competitors to drive prices
down.
 Examples: Utilities (water, electricity), public services (like postal services),
and pharmaceutical companies holding exclusive patents for certain drugs.
Market Behavior:
 A monopolist is a price maker, determining the price and quantity of the
product. It maximizes profit by choosing the quantity where Marginal Revenue
(MR) = Marginal Cost (MC), and then sets the price accordingly.
 Since the monopolist faces no competition, there is a risk of price gouging and
reduced consumer choice. Monopolists may also have little incentive to
innovate or improve product quality.
 LEARNING ACTIVITY # 1: Instructions:
1. Read the description of the four market structures: Perfect Competition,
Monopolistic Competition, Oligopoly, and Monopoly.

2. Complete the table below by identifying key characteristics for each

market structure. You should fill in the table with the correct information
based on the descriptions given.

C.
Engagement

3. Write 3-4 sentences for each market structure summarizing what you learned from
the table. Answer the following questions:

 How are the number of sellers in each structure different?

 How does product differentiation affect the market?
 How do pricing and competition work in each market structure?
POST TEST
I. Directions: Identify what is asked in each item. Write the letter of the correct answer
in your notebook.
1. An industry with significant barriers to entry and a single supplier.
A. Perfect Competition B. Monopolistic Competition
C. Oligopoly D. Monopoly
2. A highly concentrated market with just a few interdependent firms.
A. Perfect Competition B. Monopolistic Competition
C. Oligopoly D. Monopoly
3. A highly competitive market with slightly differentiated products.
A. Perfect Competition B. Monopolistic Competition
C. Oligopoly D. Monopoly
4. A highly competitive market where firms are price takers.
A. Perfect Competition B. Monopolistic Competition
C. Oligopoly D. Monopoly
5. Which of the following is the most competitive market structure?
A. Perfect Competition B. Monopolistic Competition
 C. Oligopoly D. Monopoly
6. Which of the following is the least competitive market structure?
A. Perfect Competition B. Monopolistic Competition
C. Oligopoly D. Monopoly
7. Which of the following is NOT a feature of monopolistic competition?
A. Numerous sellers B. Product differentiation
C. Numerous buyers D. Homogenous products
8. In which form of market structure would price be the key factor when competing?
A. Monopoly B. Oligopoly
C. Monopolistic competition D. Perfect competition

Answer:
1. D
2.C
3.A
4.B
5.A
6.D
7.D
8.D
Write your personal insights about the lesson using the prompts below.
V. I understand that ___________________.
REFLECTION I realize that ________________________.
I need to learn more about __________.

Prepared by:

MARIA TERESSA N. ALDAY

Social Science Teacher

Checked by:

MARIA CARLA A. NAZARENO

School Principal II