​Applied Economics: Market Structures

​Applied Economics:
Market Structures

By Alnia Laurente Alterado

Preliminary Activities

• ​Prayer

• Checking of Attendance

• Class Reminders

Poll

Are you ready for today's lesson?

• Yes, I am looking forward to it.

• Yes, but I am a bit nervous.

• No, but I am hoping to learn new things.

• No, I am feeling a bit unwell.

Presenting the
New Lesson

Describe the picture

Where do you usually see rice stalls/rice vendors?

How many rice vendors do you know? Where are their stalls located?

What do you notice about the rice prices in different stalls?
Are the prices significantly different, or are they mostly similar?

If you were to start your own rice business, what resources and requirements would you need to get started?
Do you think it would be easy or challenging to acquire these?

Describe the picture

How many milk tea shops do you know? Where are they located?

What differences do you observe in the menu or flavors offered by various milk tea shops?

What do you notice about the prices of milk tea across different shops?
Are the prices significantly different, or are they mostly similar?

If you were to start your own milk tea business, what resources and requirements would you need?
Do you think it would be easy or challenging to acquire these?

Describe the picture

How many telco companies do you know in the Philippines?
Which of these have coverage/signal in our area?

What do you notice about the prices of their services (data, calls, text, plans)? Are they significantly different, or are they mostly similar?

If you were to start your own telecommunications company, what resources or requirements would you need?
Do you think it would be easy or difficult to acquire these?

Describe the picture

How many electricity providers do we have in our area?

Who is the sole electricity provider in our area?

How reliable is the service of our electricity provider? Are power interruptions frequent or rare?

What do you notice about the electricity rates? Do we have any alternatives or options?

If you were to start your own electricity company in our area, what resources or requirements would you need?
Do you think it would be easy or difficult to acquire them?

Multiple Select

Which of the industries we discussed has many sellers?

• Rice stalls

• Milk tea shops

• Telcos

• Local Electricity provider

Multiple Choice

Which of the industries has only one seller?

• Rice stalls

• Milk tea shops

• Telcos

• Local Electricity provider

Multiple Select

Why is the level of competition different in each industry?

• Because some industries have higher start-up costs

• Because some products are easier to produce

• Because some industries are regulated or monopolized

Establishing a purpose for the lesson

MOST ESSENTIAL LEARNING COMPETENCY

*Differentiate various market structures in terms of (a) number of sellers, (b) types of products, (c) entry/exit to market, (d) pricing power, and (e) others.

• differentiate the four market structures (Perfect Competition, Monopolistic Competition, Oligopoly, and Monopoly) based on number of sellers, type of product, entry/exit barriers, and pricing power.

• show appreciation for how different levels of competition affect consumer welfare and ethical business practices.

• classify features of each market structure by completing the Wayground drag-and-drop sorting activity accurately.

Lesson Objectives: At the end of the lesson, you should be able to...

Structure	Sellers	Product Type	Entry Barriers	Pricing Power	Examples
Perfect Competition	Many	Identical	None	None	Rice, vegetables
Monopolistic Competition	Many	Differentiated	Low	Some	Milk tea, clothing shops
Oligopoly	Few	Differentiated/ Identical	High	Strong	Telcos, oil firms
Monopoly	One	Unique	Very High	Full	Electricity provider

• Many sellers, identical product, no control over price

  Example: vegetable vendors; all sell similar items

Perfect Competition

• Many sellers, differentiated products, branding plays major role

  Example: milk tea shops with unique flavors and packaging

Monopolistic Competition

• Few dominant sellers, high barriers to entry

  Example: Globe/Smart/Dito

• Firms monitor each other’s prices

Oligopoly

• One seller controls whole market

  Example: Local electric company

• No substitutes

Monopoly

Flashcard Exploration

​https://wayground.com/join?gc=26591994&autostart=true

Developing Mastery:
Drag and Drop Sorting Board

Categorize

Options (20)

Many sellers (1)

Few sellers

Mutual interdependence

High barriers to entry

Price leadership/collusion possible

Examples: Globe, Smart, Dito

One seller

Unique product

Very high barriers

Price maker

Example: local electric cooperative

Identical products

No barriers to entry

Price taker

Examples: rice vendors, vegetable stalls

Many sellers (2)

Differentiated products

Low entry barriers

Some pricing power

Examples: milk tea shops, salons

Market Structures

Perfect Competiti​on ​​

Monopolistic Competiti​on ​​

Oligopoly

Monopoly

Finding Practical Applications

Provide your own examples of different market structures that can be found in our community.

• ​Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

What market structure does the local water district belong to?

Why does the price of rice vary very little between stores?

Why do telcos often offer similar promotions?

Generalization

Open Ended

More ​sellers mean _______________.

Open Ended

Less competition means​ ________________.

Open Ended

​ _________________ affects consumer welfare.

Open Ended

Write one thing from today’s lesson that you will remember or found interesting.

Evaluating Learning

Open Ended

Write your full name.
(Last name, First Name, Middle Initial)

Multiple Choice

Which market structure has many sellers offering identical products?

• Monopoly

• Oligopoly

• Perfect Competition

• Monopolistic Competition

Multiple Choice

Globe, Smart, and Dito belong to which market structure?

• Monopoly

• Oligopoly

• Perfect Competition

• Monopolistic Competition

Multiple Choice

Which structure has differentiated products and low entry barriers?

• Monopoly

• Oligopoly

• Perfect Competition

• Monopolistic Competition

Multiple Choice

Which market structure is dominated by only one seller?

• Monopoly

• Oligopoly

• Perfect Competition

• Monopolistic Competition

Drag and Drop

More ​sellers mean

Placeholder

Drag these tiles and drop them in the correct blank above

more competition.

fewer buyers.

higher prices.

less variety.

Multiple Choice

A price taker is a characteristic of which market structure?

• Monopoly

• Oligopoly

• Perfect Competition

• Monopolistic Competition

Multiple Choice

Electricity supply in most towns is an example of a:

• Monopoly

• Oligopoly

• Perfect Competition

• Monopolistic Competition

Multiple Choice

Which structure has sellers that rely heavily on branding and product differentiation?

• Monopoly

• Oligopoly

• Perfect Competition

• Monopolistic Competition

Multiple Choice

Which market structure has the highest level of entry barriers?

• Monopoly

• Oligopoly

• Perfect Competition

• Monopolistic Competition

Drag and Drop

Less competition means​

Placeholder

Drag these tiles and drop them in the correct blank above

more pricing power.

higher costs for consumers.

decreased product quality.

more market saturation.

Thank you very much.

End.

Word Cloud

Write one or two words that describes how you feel about today’s lesson.