7.1 Competition and Market Structures
Unit 2 Lesson 7: Competition and Market Structures
Main Idea
Market structures include perfect competition, monopolistic competition, oligopoly, and monopoly. Perfect competition is when a large number of buyers and sellers exchange identical products. Supply and demand set the equilibrium price and each firm sets the level of output that will maximize its profits. Oligopoly is a market structure in which a few very large sellers dominate the industry.
Lesson Objectives
By the end of this lesson, students should be able to:
Market structures include perfect competition, monopolistic competition, oligopoly, and monopoly. Perfect competition is when a large number of buyers and sellers exchange identical products. Supply and demand set the equilibrium price and each firm sets the level of output that will maximize its profits. Oligopoly is a market structure in which a few very large sellers dominate the industry.
Lesson Objectives
By the end of this lesson, students should be able to:
- Describe the characteristics of perfect competition.
- Describe the nature of monopolistic competition.
- Describe the behavior and characteristics of the oligopoly.
- Identify several types of monopolies.
Reading Assignment
Read pages 164 - 171 in Economics: Principles & Practices. Complete the Guided Reading Activity (print it) as you read. Turn it in after you have completed it.