7.1 market structure
TRANSCRIPT
![Page 1: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/1.jpg)
Warm Up
List your favorite brand for the following:1. Jeans2. Shampoo3. Shoes• Explain why you like these particular
brands?
![Page 2: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/2.jpg)
![Page 3: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/3.jpg)
Chapter 7Competition, Market
Structures, and the Role of Government
12.2.8 the role of profit as the incentive to the entrepreneurs in a market economy
![Page 4: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/4.jpg)
Market Structures
• What is the primary aim/goal of businesses?• To maximize profits• What is competition?• Striving against others to reach an
objective
![Page 5: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/5.jpg)
4 Types of Market Structure
1. Pure/Perfect Competition– Large number of buyers and sellers– Identical product– Well informed buyers and sellers
More Competition Less Competition
![Page 6: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/6.jpg)
Pure/Perfecct CompetitionMany buyer/sellers +
Identical Products
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
![Page 7: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/7.jpg)
Monopolistic Competition
• Meets all condition of perfect competition except for identical products.– Product differentiation
• Monopolistic competitors use nonprice competition– Advertising, giveaways, or other promotions
More Competition Less Competition
![Page 8: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/8.jpg)
Monopolistic Competition
Same as pure competition except for product differentiation
Gap Levis Lucky
![Page 9: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/9.jpg)
Monopolistic Competition
Are these shampoos/conditioners different?Pantene $14.50 Frederic Fekkai
$54
![Page 10: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/10.jpg)
Monopolistic Competition
Are these mascaras different?Maybelline Sisley
$4 $43
![Page 11: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/11.jpg)
Oligopoly
• A few very large sellers dominate the industry• Oligopolists act independently by lowering prices
soon after the first seller announces the cut• Collusion: formally agree to set prices• Engage in price wars
More Competition Less Competition
![Page 12: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/12.jpg)
Oligopoly
Ipod Zune
![Page 13: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/13.jpg)
Oligopoly
Few producers control supply and price
![Page 14: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/14.jpg)
Coca-Cola Classic• Coca-Cola classic• Sprite• Dasani• Barq's• Dannon• Nestea• Rockstar• Evian
• Fanta• Fresca• Minute Maid• Mr. Pibb• Powerade• Seagrams Ginger Ale &
Mixers• TAB
![Page 15: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/15.jpg)
Pepsi-co• Aquafina• Pepsi• Mountain Dew• Sierra Mist• Sobe• Lipton Brisk Tea
• MUG Root Beer• Slice• Gatorade• Dole Juice• Tropicana
![Page 16: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/16.jpg)
Cadbury Schweppes
• 7 Up• Canada Dry• Clamato• Dr Pepper• Hawaiian
Punch• Mott's• Orangina• Snapple
![Page 17: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/17.jpg)
Toyota
• Toyota• Scion• Lexus
![Page 18: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/18.jpg)
Chrysler
• Chrysler• Jeep• Dodge
![Page 19: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/19.jpg)
General Motors
• Chevrolet• Buick• Pontiac• GMC• Saturn• Hummer• SAAB• Cadillac
![Page 20: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/20.jpg)
Monopoly
• Only one seller of a particular product• Few monopolies
![Page 21: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/21.jpg)
Monopoly
More Competition Less Competition
• One seller dominates the market with no close substitutes
![Page 22: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/22.jpg)
Monopoly
• Natural Monopoly - efficient production by a single supplier
![Page 23: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/23.jpg)
Monopoly
• Geographic Monopoly - small town
![Page 24: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/24.jpg)
Monopoly
1. Technological Monopoly - new invention
– Patent: exclusive right for 17 years
Segway
![Page 25: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/25.jpg)
Monopoly
1. Technological Monopoly - new invention
– Copyright: lifetime + 50 years
This telecast is copyrighted by the NFL for the private use of our audience. Any other use of this telecast or of any pictures, descriptions, or accounts of the game without the NFL’s consent, is prohibited.
![Page 26: 7.1 market structure](https://reader036.vdocuments.net/reader036/viewer/2022062900/58d1b7121a28ab98278b5687/html5/thumbnails/26.jpg)
Monopoly
1. Government Monopoly - government owned businesses