Agulto - Module 5 - Market Structures

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School
Northern Virginia Community College **We aren't endorsed by this school
Course
ECO 201
Subject
Economics
Date
Nov 9, 2023
Pages
2
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Ohwen Leonard B. Agulto Applied Economics ABM 12-Ishikawa Ms. Renaliza Rondina Activities Let us check your understanding on the topics that we just discussed. Activity 1. Identification Directions. Read the questions carefully. Identify the type of market structure for each item. 1. If Company A competes with several firms in the industry but with product homogeneous to their offers on shelves, what market structure does it enter? Pure (Perfect) Competition 2. If BCX Company competes with few large firms in the industry but with differentiated products they offer on shelves, what market structure does it enter? Oligopoly 3. If there are several barriers on the entry and exit of firms in the industry due to huge amount of capital needed, what market structure are they in? Oligopoly 4. If Company X is the only provider of electricity energy in Metro Manila, what market structure does it join? Monopoly 5. ABM Supermarket has joined many and small marketers in the industry with several competitors selling the same products. What market structure does it join? Pure (Perfect) Competition Activity 2. Enumeration Directions: Accomplish this activity independently. Below is the list of some industries which dominate the market. Enumerate the industries which are considered perfect competitors, monopolists, monopolistic competitors and oligopolists. agricultural markets, internet providers, foreign exchange (FOREX) markets electricity provider, public (MRT) transport, telecom companies, gasoline stations, auto/car companies, flower shops, barber shops, car wash services, automotive services (source: educba.com)
Sample Industries and Market Structures Perfect Competitors Monopolists Monopolistic Competitors Oligopolists 1. Agricultural Markets 1. Electricity Provider 1. Carwash Services 1. Telecom Companies 2. Internet Providers 2. Public (MRT) Transport 2. Flower Shops 2. Gasoline Stations 3. Foreign Exchange (FOREX) Markets 3. Barber Shops 3. Auto/Car Companies 4. Automotive Services CHECK YOUR UNDERSTANDING Part II. Enumeration Directions: Observe the behaviour of the nearest market in your locality. In the columns are the characteristics of the different market structures. Describe the market structures of the industries in the market as to number of sellers, pricing power, type of goods or services, and barriers to entry and exit. Complete the chart. MARKET STRUCTURES AND CHARACTERISTICS MARKET STRUCTURES NO. OF SELLERS/FIRMS CONTROL OVER PRICE/PRICING POWER TYPE OF GOODS or PRODUCTS BARRIERS TO ENTRY/EXIT TO MARKET 1. Pure/Perfect Competitors Many and Small vendors Consumers have the power to dictate prices Homogeneous Easy and Free. No barriers. 2. Monopolists Only One Seller Seller has the full capacity to manipulate prices Very unique Entry and exit is tough and blocked. 3. Oligopolists Few large enterprises Firm has the full power to control prices Standardized and Differentiated Huge investment. Difficult to enter and exit. 4. Monopolistic Competitors Multiple giant firms Firm and Consumers can control the prices. Offers substitute products Easy entry and exit.
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