Market Structures Review

Which market is which?

• one seller in the market

• Monopolistic competition

• Up to infinite sellers in a market

• Monopoly

• Many sellers selling similar products

• Perfect Competition

• A few sellers in the market

• Oligopoly

Order the following from MOST competitive to LEAST competitive

• Perfect Competition

• Monopolistic Competition

• Monopoly

• Oligopoly

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

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

• someone that owns a share in the corporation

• anyone that has an interest in the corporation doing well

Which merger is which?

Groups:

(a) Vertical

,

(b) Horizontal

,

(c) Conglomerate

• targets various market segments

• integrates entire supply chain

• offers diverse product lines
• collaborates with various companies
• Luxiottica

• Sprint--T-Mobile

• offers a wide range of products
• acquires companies in different sectors
• Apple

• operates in various markets
• diversifies across multiple industries
• expands across multiple businesses

• Unilever

• controls all aspects of production

• General Mills

• Pepsi

• invests in unrelated businesses
• Disney-Pixar

• focuses on a single industry

• streamlines operations within a sector

Application of Knowledge

• 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. 

  
  

• Monopoly

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

  
  

• Monopolistic Competition

• 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. 

• Oligopoly

• 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