Tuesday April 7, 2015 Agenda Turn in Projects Review of Businesses Types of Competition/Profit Notes Remake Monopoly Classwork Homework Finish Classwork

Civics and Economics Day 132

Types of Businesses Chart Sole Proprietorship PartnershipCorporationFranchise How many people own the business? Percent of Businesses in the US? Advantages Disadvantages Examples

TYPES OF COMPETITION IN A MARKET ECONOMY

Why is Economic Competition Important?  Every business tries to provide a product at better price or quality to attract customers and make profit.  This competition gives us better products at a lower price.  Competition helps keep supply and demand balanced.

Types of Business Competition Monopolies Natural Monopolies Oligopolies Monopolistic Competition Pure Competition

Monopolies One single large seller with no close competition and no alternative substitutes Examples: Software Companies like Microsoft, National Football League

Natural Monopoly  A monopoly that exists as a result of high fixed or start- up costs. Also, costs are lower if there is one producer instead of several  Imagine if every telephone or cable company had to put their own wires in the ground/on telephone poles!  Examples: Cable companies, Electric Companies

Oligopoly  Very similar products, few sellers  Fairly inelastic demand (Doesn’t change regardless of price)  Only the biggest and oldest survive  Businesses are big and equal in size.  Examples:  Banks, Car makers, gasoline retail companies, insurance companies

Monopolistic Competition  Sellers feel they do have some competition  One big dominant company with a few medium or smaller sized companies  Examples:  Google  Walmart  Hotels  Starbucks

Pure Competition  Low barriers to entry (obstacles that make it difficult to enter a market)  Ex: Advertising, high costs, regulations  Many choices  No business has dominance.  Examples:  Restaurants, convenience stores, nail salons, professional services (dentists, doctors, etc.)

Monopoly Remake Pick either Monopolistic Competition, Oligopoly and Pure Competition and ANSWER IN COMPLETE SENTENCES describing how if Hasboro were to make one of these into a game like Monopoly how the following would be different. How would the board be shaped differently? How would the way you play be different? What type of properties would there be? What would the pieces look like? How would you win? Monopoly The Board is square shaped (For no particular reason) Monopoly you take turns, buying properties you land on or paying rent at properties you land on. Each property is a chance to make money with either homes or hotels. The pieces are inspired by things that contributed to economic success. You win buy owning all the pieces and everyone going bankrupt.