Market Structures Review

Which market is which?

• one seller in the market

• Monopolistic competition

• Many sellers selling similar products

• Monopoly

• A few sellers in the market

• Oligopoly

• Up to infinite sellers in a market

• Perfect Competition

Order the following from MOST competitive to LEAST competitive

• Monopolistic Competition

• Perfect Competition

• Monopoly

• Oligopoly

Order the following from MOST beneficial for CONSUMERS to LEAST

• Monopolistic Competition

• Perfect Competition

• Monopoly

• Oligopoly

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

• 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

• cares mostly about profits

Which merger is which?

Groups:

(a) Vertical

,

(b) Horizontal

,

(c) Conglomerate

• expands across multiple businesses

• collaborates with various companies
• Unilever

• acquires companies in different sectors
• invests in unrelated businesses
• Apple

• General Mills

• controls all aspects of production

• targets various market segments

• Disney-Pixar

• offers diverse product lines
• integrates entire supply chain

• Sprint--T-Mobile

• streamlines operations within a sector

• focuses on a single industry

• operates in various markets
• Luxiottica

• Pepsi

• diversifies across multiple industries
• offers a wide range of products

Application of Knowledge

• 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. 

• 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. 

  
  

• Oligopoly

• 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. 

  
  

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

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