2. Unit Three: Lesson Three-Monopolies Kirby World History CHS

4. North Clackamas School District Social Studies Priority Standards:  HK 2. Analyze the complexity and investigate causes and effects of significant events in World History.

5. I Can….Describe in writing the types of monopolies that can exist in a given economy

7. USE THE CORNELL NOTE TEMPLATE FOR OF YOUR NOTES TODAY! Relax and enjoy the ride In History Class! Focus Up and……

8. Market Structures II.

9. Market Structures [How many sellers in each industry]

10. Last time we met, we looked at the influence of……..

11. Brainstorm in you group 5 of the “Advertising Appeals” we learned about last time.

12. Testimonials A television star or someone who appears to be an authority tells you that a product is the best. Bandwagon Appeal Everyone is doing it. It is the thing to do. Scare Tactics You or your family will be safer or healthier with this product. Appeal to Individual Feelings You will feel like a million bucks if you use this. Sex Appeal You will get more dates if you use this product. Or, the ad seems to be selling sex appeal. The Folksy Appeal Just like mom used to make. The Numbers Game “3 out of 4 doctors surveyed recommend this item.” “What Will Others Think?” Makes you worry about your appearance. “Ring around the collar.” Snob Appeal $$$ Using status to sell. “Available only at fine department stores”. Types of Advertising Appeals

13. great icon of the entertainment community Pillsbury DoughboyA great icon of the entertainment community has died today at age 71, the Pillsbury Doughboy. died yesterday of a yeast infectionHe died yesterday of a yeast infection and complications from repeated pokes in the belly. buried in a lightly greased coffin Mrs. Butterworth’sHungry JackCalifornia Raisins Betty CrockerHostess TwinkiesCaptain CrunchDoughboy was buried in a lightly greased coffin. Dozens of celebrities turned out to pay their respects, including Mrs. Butterworth’s, Hungry Jack, the California Raisins, Betty Crocker, the Hostess Twinkies, & Captain Crunch. gravesite was piled high with floursAunt JemimaThe gravesite was piled high with flours. Aunt Jemima delivered the eulogy and lovingly described Doughboy as a man who never knew how much he was kneaded. later life was filled with turnoversnot considered a very smart cookie half-baked schemes crusty old manDoughboy rose quickly in show business, but his later life was filled with turnovers. He was not considered a very smart cookie, wasting much of his dough on half-baked schemes. Despite being a little flaky at times he still, as a crusty old man, was considered a roll model for millions. Play Dough John DoughJane Dough Pop TartDoughboy is survived by his wife, Play Dough; two children, John Dough and Jane Dough; plus they had one in the oven. He is also survived by his elderly dad, Pop Tart. The funeral was held at 3:50 for about 20 minutes.

17. Choosy mothers choose _______.Choosy mothers choose _______. JiffJiff It is the only pain reliever that you need....It is the only pain reliever that you need.... BayerBayer How do you spell relief?How do you spell relief? RolaidsRolaids Come fly the friendly skies.Come fly the friendly skies. United AirlinesUnited Airlines Be one of the few, the proud, the...Be one of the few, the proud, the... U.S. MarinesU.S. Marines Just for the taste of it.Just for the taste of it. Diet CokeDiet Coke

18. Many

20. 1. Coke Classic 2. Pepsi Cola 3. Diet Coke 4. Mountain Dew 5. Diet Pepsi Coke products have 43 % of the market and Pepsi products have 32 %. Pepsi’s first commercial in 1939 became so popular, it became a hit record and was played in jukeboxes. A 12-ounce bottle sold for a nickel. Here it is. 6. Sprite 7. Dr. Pepper 8. Caffeine Free Diet Coke 9. Diet Dr Pepper 10. Sierra Mist

23. Oligopoly Examples Shox Shox is Nike’s latest hot seller. I t is modeled on a 10,000 year old sandal discovered in an Oregon cave. Market Share of CellPhone Sales Samsung 25% Apple 7.5% L.G.Tel. 21% Motorola 16% Big 3 Subscribers[mil.] AT&T Wireless VerizonWireless SprintNextel 51.6 M 47.4 M 40.4 M

24. 1.Nike 36.4 % 2.Reebok 12.5 % 3.New Balance 10.9 % 4.Adidas 9.1 %

26. “Adidas 1” at $250, uses an in-sole computer to adjust its heel cushioning to changes in the running surface. The heel contains a wafer-thin sensor and magnet that monitors the amount of shock applied to the foot and adjusts the footbed 1,000 times per second. Adidas executives hope this shoe will be their iPod. [one of those “gotta-have” items] This shoe is called as a “smart” shoe. At $250, it should be a genius. However, it is 1/3 heavier than other shoes, has no reflective trim, & come in only one width. Be smart. Buy a dumber shoe. You’ll save more than $150.

30. Monopolistic Competition Monopolistic Competition [element of monopoly [differentiation uniqueness] so called monopolistic competition] This is the most common market structure – over 99% of all firms. Examples of Monopolistic Competition Blue JeansGrocery StoresCandy Bars Dry CleanersRock ConcertsPizza Shoe StoresCassette playersChicken ToothpasteBook StoresSoaps and detergents RestaurantsVacuum CleanersFurniture Stores BarbershopsBeauty ParlorsEcon Textbook Co’s “Econ,Econ” “Econ”

32. A monopoly is a market dominated by a single seller.

33. Monopoly  A monopoly is a market dominated by a single seller.  In general, monopolies are illegal.  Monopolies lead to higher prices, inferior quality of products, and reduced supply.

34. Monopolies can lead to higher prices. Monopolies do not benefit consumers.

35. Monopoly – the “power of one” Monopoly [mono(1) poly (seller)] C ontrol over price: Total Product: unique Ex: Comcast Cable TV T echnological M onopoly “Patent” Ex: Rubik’s Cube Government Monopoly Owned & operated by G Ex: U.S. Mail State Highways Natural Monopoly Competition would be chaotic. It is natural to give it to one co. Ex: Utilities Cable TV Geographic Monopoly Only seller in a specific area Example: Remote Store DART “Price Makers” Greyhound Forney High Basic Cable Rate Cable TV WasteManagement TXU U.S.Mail Rubik’sRubik’sCubeCubeRubik’sRubik’sCubeCube DART

36. Ex’s are utility companies and cable TV Market where average costs are lowest when all output is produced by a single firm Where competition would be chaotic, therefore, it is natural to give the business to one firm They are privately owned, but regulated by the government

37. Dart Pilot Point High [Local G] State G Federal G

38. The G o vernment has control over: U.S. Mail, State highways, and Public schools BryanAdams Another mugging at Bryan Adams

41. Examples of Geographic Monopoly “Last Chance Gas Station” A general store in the middle of nowhere Last Chance Gas

42. Oligopoly 1._______________________ 2._______________________ 3._______________________ 4._______________________ 5._______________________ Perfect Competition 1._______________________ 2._______________________ 3._______________________ 4._______________________ 5._______________________ Pure Monopoly 1._______________________ 2._______________________ 3._______________________ 4._______________________ 5._______________________ M onopolistic C ompetition 1._______________________ 2._______________________ 3._______________________ 4._______________________ 5._______________________ Market Structure Word Scramble [From the word scramble below, pick out the 5 correct answers for each market structure] Directions: Directions: Fill in the chart to the left Fill in the chart to the left with the red bold face words with the red bold face words on the screen. (20 pts.) on the screen. (20 pts.) Name : _________________ Period: _________

43. Economics Economics (college) Textbook Companies (over 50 of these and they are differentiated Blue Jean Blue Jean Companies (dozens and differentiated) Black eyed peas [that you eat] [that you eat] One seller Easiest to enter Very many Very many (100’s) sellers Price takers Manysellers Many [25-75] sellers Price Maker Beauty Shop few control 70% A few control 70% of the market Nat Geog Natural, Geographic, Tech & Gov. Tech nological, & Gov. Nike, Reebok, New Balance Adidas Balance, and Adidas Homogeneous prod uct [Identical] Identicalor Identical (pure) or differentiated differentiated products Comcast Cable TV Price Leadership is used Polaroid Instamatic McDonald’s, Wendy’s, Burger King and Burger King Product differ entiation gives an element of monopoly Oligopoly 1._______________________ 2._______________________ 3._______________________ 4._______________________ 5._______________________ Perfect Competition 1._______________________ 2._______________________ 3._______________________ 4._______________________ 5._______________________ Pure Monopoly 1._______________________ 2._______________________ 3._______________________ 4._______________________ 5._______________________ M onopolistic C ompetition 1._______________________ 2._______________________ 3._______________________ 4._______________________ 5._______________________ Market Structure Word Scramble [From the word scramble below, pick out the 5 correct answers for each market structure] * bold face type. * Write the bold face type. Name 1. ________________ Name 2.________________

44. Oligopoly 1. Few control 70% 2. N ike, Reebok, N.Bal., & Adidas 3. Identical or differentiated 4. Price Leadership 5. M c D ’s, W endy’s, & Burger King. Perfect Competition 1. Easiest to enter 2. Homogeneous product 3. Very many sellers 4. Price Takers 5. Black eyed peas Pure Monopoly 1. Nat, Geog, Tech, & Gov. 2. Polaroid Instamatic 3. One seller 4. Comcast Cable TV 5. Price Maker Monopolistic Competition 1. Product differentiation 2. Many sellers 3. Econ Textbook Co’s 4. Blue jean companies 5. Beauty Shop Market Structure Word Scramble [From the word scramble below, pick out the 5 correct answers for each market structure] Name 1. ________________ Name 2.________________ few control 70% A few control 70% of the market * bold face type. * Write the bold face type. Nat Geog Natural, Geographic, Tech & Gov. Tech nological, & Gov. Nike, Reebok, New Balance Adidas Balance, and Adidas Homogeneous prod uct [Identical] Identicalor Identical (pure) or differentiated differentiated products Price Leadership is used Polaroid Instamatic McDonald’s, Wendy’s, Burger King and Burger King Product differ entiation gives an element of monopoly Very many Very many (100’s) sellers Price takers Manysellers Many [25-75] sellers One seller Easiest to enter Comcast Cable TV Economics Economics (college) Textbook Companies (over 50 of these and they are differentiated Black eyed peas [that you eat] [that you eat] Blue Jean Blue Jean Companies (dozens and differentiated) Price Maker Beauty Shop

45. Work Time  WHEN YOU ARE FINISHED with the “Market Structure Word Scramble” ….Work On:  “Market Structure Worksheet.  We will have a SUMMATIVE QUIZ NEXT WEEK OVER MARKET STRUCTURES (50 questions-Open Notes>