Tuesday April 7, 2015

Agenda

• Turn in Projects• Review of Businesses• Types of

Competition/Profit Notes• Remake Monopoly

Classwork

Homework

• Finish Classwork

Civics and Economics Day 132

Types of Businesses ChartSole Proprietorship

Partnership Corporation Franchise

How many people own the business?

Percent of Businesses in the US?

Advantages

Disadvantages

Examples

TYPES OF COMPETITION IN A MARKET ECONOMY

Why is Economic Competition Important?Every business tries to

provide a product at better price or quality to attract customers and make profit.

This competition gives us better products at a lower price.

Competition helps keep supply and demand balanced.

Types of Business Competition• Monopolies• Natural Monopolies

• Oligopolies• Monopolistic

Competition• Pure Competition

Monopolies

• One single large seller with no close competition and no alternative substitutes• Examples:• Software Companies like

Microsoft, National Football League

Natural MonopolyA monopoly that exists as a

result of high fixed or start-up costs. Also, costs are lower if there is one producer instead of several

Imagine if every telephone or cable company had to put their own wires in the ground/on telephone poles!

Examples: Cable companies, Electric Companies

OligopolyVery similar

products, few sellersFairly inelastic

demand (Doesn’t change regardless of price)

Only the biggest and oldest survive

Businesses are big and equal in size.

Examples: Banks, Car makers,

gasoline retail companies, insurance companies

Monopolistic CompetitionSellers feel they do have

some competitionOne big dominant

company with a few medium or smaller sized companies

Examples: Google Walmart Hotels Starbucks

Pure CompetitionLow barriers to entry

(obstacles that make it difficult to enter a market) Ex: Advertising, high costs,

regulationsMany choicesNo business has

dominance.Examples:

Restaurants, convenience stores, nail salons, professional services (dentists, doctors, etc.)

Monopoly Remake• Pick either Monopolistic Competition,

Oligopoly and Pure Competition and ANSWER IN COMPLETE SENTENCES describing how if Hasboro were to make one of these into a game like Monopoly how the following would be different.

• How would the board be shaped differently?

• How would the way you play be different?

• What type of properties would there be?• What would the pieces look like?• How would you win?

• Monopoly• The Board is square

shaped (For no particular reason)

• Monopoly you take turns, buying properties you land on or paying rent at properties you land on.

• Each property is a chance to make money with either homes or hotels.

• The pieces are inspired by things that contributed to economic success.

• You win buy owning all the pieces and everyone going bankrupt.