Economics

Economics

Grade 11

Poll

Most market in the real world fall somewhere between the models of perfect competition and __________

• Monopolistic

• Monopoly

• Oligopoly

• Monopolistic

​Chapter 7, Section 3: Other Market Structure

​Pages 206-213

​Objectives

1. Interpret the monopolistic competition and differentiation

2. Examine the non-price competition

3. Evaluate characteristics of monopolistic competition​

​

Monopolistic competition occurs when many sellers offer similar, but not standardized, products.​

​Product differentiation is the effort to distinguish a product from similar products.

​The market is monopolistic because each seller has influence over a small​

​segment of the market with products that are not exactly like those of their competitors. Someone looking for a pink T-shirt with fuzzy kittens would not accept a black monster-truck rally T-shirt as a close substitute.

​

​Obvious examples are brand-name items such as toothpaste, cosmetics, and designer clothes.

Open Ended

Why monopolistic competition has differentiated products ?

What is barriers of entry in a monopolistic competition?

​

​1.Firms in a monopolistically competitive market ensure that its products are imperfect substitutes for each other.

​As a result, a business that works on its branding can increase its prices without risking its consumer base.

​​

​2.Barriers to entry and exit in a monopolistic competitive industry are low, and the decisions of any one firm do not directly affect those of its competitors.

Multiple Choice

Give examples of a differentiated product.

• Agriculture products

• High speed internet service

• Milk

• Water providing industry

​

​Nonprice competition occurs when producers use factors other than low price to try to convince customers to buy their products.​Example such as style, service, advertising, or giveaways—to try to convince customers to buy one product rather than another

Open Ended

Explain when you have been attracted by the product's non price competition.

​

​It can be related to purchase of a cloth or restaurent service or taxi service.

Multiple Choice

Give examples of non price competition in a monopolistic competition.

• agricultural products from different countries

• Use of diary products

• Buy two get one offer on a dress

• None of these

​Video on monopolistic competition

https://www.youtube.com/watch?v=T3F1Vt3IyNc

Open Ended

What are the characteristics of monopolistic competition?

Multiple Choice

How is monopolistic competition similar to perfect competition 

and how is it similar to monopoly?

• One buyer and control on prices

• Many buyers and sellers and price control

• Many buyers and few sellers

• All of these

Open Ended

Give the main points of the lesson