Economics – Chapter 7



Economics – Chapter 7

Competition and Market Structures

Chart Activity

Objective

The goal of this activity is to help you understand how our economy is structured and how market structures influence the price of the things we buy. The term market structure refers to the nature and degree of competition among businesses. In all developed nations there are four kinds of market structures. At the end of this activity, you will be able to identify the four kinds of market structures, discuss their characteristics, and explain how they impact the price of the items we purchase.

Directions

Below is a blank chart which lists the four market structures and their characteristics. The four market structures are: perfect competition, monopolistic competition, oligopoly, and monopoly. The characteristics of these market structures are: number of firms or sellers, similar or different products (homogenous or heterogeneous), and price control. Using the internet and the web addresses listed below, complete the chart below by filling-in the missing information.

Name of Student: ___________________________________________ Period: __________

| |Market Characteristics |

| |Definition | |Number of Firms or |Similar or Different |Ability to Control |1 Example |

|Type of Market | | |Sellers |Products Homogenous or |Prices | |

| | | | |Heterogeneous | | |

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|Perfect Competition| | | | | | |

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|Monopolistic | | | | | | |

|Competition | | | | | | |

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|Oligopoly | | | | | | |

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|Monopoly | | | | | | |

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