Market Structures Review

Which market is which?

• Up to infinite sellers in a market

• Perfect Competition

• one seller in the market

• Monopolistic competition

• A few sellers in the market

• Monopoly

• Many sellers selling similar products

• Oligopoly

Order the following from MOST competitive to LEAST competitive

• Perfect Competition

• Oligopoly

• Monopoly

• Monopolistic Competition

Order the following from MOST beneficial for CONSUMERS to LEAST

• Monopoly

• Oligopoly

• Perfect Competition

• Monopolistic 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

• someone that owns a share in the corporation

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

• anyone that has an interest in the corporation doing well

Which merger is which?

Groups:

(a) Vertical

,

(b) Horizontal

,

(c) Conglomerate

• offers diverse product lines
• diversifies across multiple industries
• controls all aspects of production

• collaborates with various companies
• Apple

• Sprint--T-Mobile

• Disney-Pixar

• focuses on a single industry

• invests in unrelated businesses
• offers a wide range of products
• Unilever

• targets various market segments

• integrates entire supply chain

• expands across multiple businesses

• General Mills

• Pepsi

• Luxiottica

• streamlines operations within a sector

• operates in various markets
• acquires companies in different sectors

Application of Knowledge

• Monopolistic Competition

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

  
  

• Monopoly

• 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. 

  
  

• Oligopoly

• 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. 

• Perfect 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. 

  
  

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

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