Presentation is loading. Please wait.

Presentation is loading. Please wait.

MARKET STRUCTURES REVIEW Economics Mr. Bordelon. Key Terms  _____ is when a monopolist divides consumers into groups and charges different prices for.

Similar presentations


Presentation on theme: "MARKET STRUCTURES REVIEW Economics Mr. Bordelon. Key Terms  _____ is when a monopolist divides consumers into groups and charges different prices for."— Presentation transcript:

1 MARKET STRUCTURES REVIEW Economics Mr. Bordelon

2 Key Terms  _____ is when a monopolist divides consumers into groups and charges different prices for the same good.

3 Key Terms  Price discrimination is when a monopolist divides consumers into groups and charges different prices for the same good.

4 Key Terms  A market with many firms producing the same good is in _____.

5 Key Terms  A market with many firms producing the same good is in perfect competition.

6 Key Terms  Economists define _____ as a market structure with a few large firms, each of which has some market power.

7 Key Terms  Economists define oligopoly as a market structure with a few large firms, each of which has some market power.

8 Key Terms  _____ are products that are identical no matter who produces them.

9 Key Terms  Commodities are products that are identical no matter who produces them.

10 Key Terms  A(n) _____ grants the right to sell an invention without competition.

11 Key Terms  A patent grants the right to sell an invention without competition.

12 Key Terms  A(n) _____ may exist in market where it is most efficient for only one large firm to provide a product.

13 Key Terms  A natural monopoly may exist in market where it is most efficient for only one large firm to provide a product.

14 Key Terms  Economists use the term _____ to describe agreements among firms to set prices and production levels.

15 Key Terms  Economists use the term collusion to describe agreements among firms to set prices and production levels.

16 Key Terms  Monopolies benefit from _____, where production costs go down with each additional unit produced, and in turn, profits increase.

17 Key Terms  Monopolies benefit from economies of scale, where production costs go down with each additional unit produced, and in turn, profits increase.

18 Key Terms  _____ is an agreement among firms to charge one price for the same good.

19 Key Terms  Price fixing is an agreement among firms to charge one price for the same good.

20 Main Ideas  Compare and contract natural monopolies and government monopolies.

21 Main Ideas  Compare and contract natural monopolies and government monopolies.  Natural monopolies exist in markets where it would be inefficient for more than one producer to exist.  Government monopolies provide franchises, licenses, patents or copyrights for specific purposes.  Both allow monopolies to exist.

22 Main Ideas  What four conditions are necessary for a market to be considered monopolistically competitive?

23 Main Ideas  What four conditions are necessary for a market to be considered monopolistically competitive?  Many firms  Relatively easy market entry (few barriers)  Similar, but differentiated products  Slight control over price  Know the conditions for all four market structures.

24 Main Ideas Perfect Competition MonopolyOligopolyMonopolistic Competition Number of producers ManyOneFew/HandfulMany Variety of goods Identical (commodity) Unique good (inelastic) Some (commodities with some differences usually) Some (product differentiation) Market entryNone/fewImpossibleDifficultEasy Control over price NoneCompleteSome (incentives to cooperate and cheat) Some (slight) ExampleAgricultureUtilitiesOilGas Stations

25 Main Ideas  How do monopolies control price?

26 Main Ideas  How do monopolies control price?  Monopolies control price by manipulating production.

27 Main Ideas  How do companies conduct non-price competition?

28 Main Ideas  How do companies conduct non-price competition?  physical characteristics  location  customer service  advertising

29 Main Ideas  What is required for a firm to conduct a successful price discrimination scheme?

30 Main Ideas  What is required for a firm to conduct a successful price discrimination scheme?  Market power  Distinct groups  Difficult resale


Download ppt "MARKET STRUCTURES REVIEW Economics Mr. Bordelon. Key Terms  _____ is when a monopolist divides consumers into groups and charges different prices for."

Similar presentations


Ads by Google