Chapter 7 Section 1: Competition and Market Structures

Vocabulary Market structure Perfect competition Imperfect competition Monopolistic Competition Product differentiation Non price competition Oligopoly Collusion Price fixing monopoly

Vocabulary continued Natural monopoly Economies of scale Geographic monopoly Technological monopoly Government monopoly

What is the difference between perfect and imperfect competition? Notes What is the difference between perfect and imperfect competition? What is the difference between monopolistic competition and perfect competition? List the various forms of Monopoly How do private firms maximize profits?

Describe 2 oligopolies that exist in the United States today. Assignment to turn in 7-1 Make a list of 5 clothing stores. How does each store try to differentiate itself from others to compete for customers? Describe 2 oligopolies that exist in the United States today.

Chapter 7 section2: market failures

vocabulary Market failure Externality Negative externality Positive externality Public goods

1. What are the most common market failures? Notes 1. What are the most common market failures? What is the difference between negative and positive externalities? Why are externalities regarded as market failures? Why do market economies often fail to provide public goods?

Assignment to turn in 7-2 Cite at least one example of a situation in our community in which resources did not move from one market or industry to another because they were either unable or unwilling to move. Identify one possible positive externality and one possible negative externality from the closing of a military base

Chapter 7 Section 3: The Role of government

Trust Price discrimination Cease and desist order Public disclosure vocabulary Trust Price discrimination Cease and desist order Public disclosure

What did the Sherman Anti Trust Act of 1890 prohibit? Notes What did the Sherman Anti Trust Act of 1890 prohibit? What did the Clayton Antitrust Act of 1914 outlaw? Why was the Robinson-Patman Act of 1936 established? Why is public disclosure important? Why does the government take part in economic affairs?

Figure 7.4, answer questions in blue box Activity to turn in 7-3 Figure 7.4, answer questions in blue box