Market Structures Review

Which market is which?

• one seller in the market

• Perfect Competition

• A few sellers in the market

• Monopolistic competition

• Many sellers selling similar products

• Oligopoly

• Up to infinite sellers in a market

• Monopoly

Order the following from MOST competitive to LEAST competitive

• Monopoly

• Oligopoly

• Perfect Competition

• Monopolistic Competition

Order the following from MOST beneficial for CONSUMERS to LEAST

• Monopolistic Competition

• Monopoly

• Oligopoly

• Perfect Competition

Draw real life products that are SIMILAR but not identical

Draw real life products that are IDENTICAL

Draw a real life product that is UNIQUE

Which is which?

Groups:

(a) Shareholder

,

(b) Stakeholder

• cares mostly about profits

• can include employees, customers, the community, the environment

• anyone that has an interest in the corporation doing well

• someone that owns a share in the corporation

Which merger is which?

Groups:

(a) Vertical

,

(b) Horizontal

,

(c) Conglomerate

• offers diverse product lines
• expands across multiple businesses

• Apple

• offers a wide range of products
• targets various market segments

• acquires companies in different sectors
• Unilever

• diversifies across multiple industries
• Disney-Pixar

• Luxiottica

• focuses on a single industry

• operates in various markets
• Sprint--T-Mobile

• General Mills

• integrates entire supply chain

• controls all aspects of production

• Pepsi

• collaborates with various companies
• invests in unrelated businesses
• streamlines operations within a sector

Application of Knowledge

• Oligopoly

• A single company supplies water to the entire city. No other company can legally operate water pipelines. 

  
  

• Monopoly

• answer optionOn one street, you can find five different coffee shops. Each sells coffee but they all have unique flavors and promotions. Customers choose based on style and taste, not just price. 

• Monopolistic Competition

• In the soda market, two brands dominate grocery shelves. Both spend money on advertising and engage in price wars. This makes it hard for smaller drink companies to compete. 

  
  

• Perfect Competition

• A farmer brings potatoes to a farmers market. There are multiple other sellers of identical potatoes. No seller can raise their price because buyers can easily switch to someone else. 

  
  

What market forces you to pay their prices for limited options?​ (a)  

• Captive Market
• Inadequate Information
• Resource Immobility
• Externality
• Public Good