Classwork
CLASSWORK ACTIVITY - OLIGOPOLY
CLASSWORK - INDIVIDUAL WORK
CLASSWORK - MONOPOLISTIC COMPETITION
CLASSWORK ON MONOPOLY
Course outline ECONOMICS GRADE 11
HOMEWORK - MONOPOLY
HOMEWORK - SUMMATIVE
HOMEWORK - SUMMATIVE ASSESSMENT
HOMEWORK - SUMMATIVE ASSESSMENT
PERFECT MARKET GR11
ECONS XI
Overview
This is an Economics Grade 11 Course.
Content that is taught includes the following:
- Lesson 1 on different kinds of markets
- Lesson 2 on Perfect Competition market structure
- Lesson 3 on Monopoly market structure
- Lesson 4 on Monopolistic Competition market structure
- Lesson 5 on Oligopoly market structure
Welcome to ECONS XI!
| 1. Section 1: Welcome to ECONS XI | Course outline |
| 2. Section 2: Lesson 1 | |
| 3. Section 3: Lesson 2 | |
| 4. Section 4: Lesson 3 | |
| 5. Section 5: Lesson 4 | Characteristics of monopolstic competition Profits made by monopolistic competition in short run and long run |
| 6. Section 6: Lesson 5 |
Lesson 1 : Introduction to markets
A market is where buyers and sellers meet in order to exchange goods and services for money. A market does not have to only exist in the physical form but we can also buy goods and services electronically without having to be physically there in the market.
COMPOSITION OF A MARKET
A market is made up of the following:
Buyers (consumers) - they buy goods and services to satisfy their needs and wants
Sellers (producers) - they sell goods and services in order to make a profit
KINDS OF MARKETS (explain using PPT MULTIMEDIA)
Goods and services market
Factor market
Financial market
Perfect market
Imperfect market
Profit, what is the meaning of this word? Are there different kinds of profit made? Is it also possible to make a loss?
A firm can make a profit or a loss in the Short run and theLong run. Now what is the difference between short run and long run?
CONCLUSION
In your Economics journal, write down a paragraph or two on the following:I need help with ....
I learnt more about ....
I can explain .......
I enjoyed ......
I disliked ......
Lesson 2: Perfect Market - an introduction to perfect competition
INTRODUCTION
WELCOME BACK TO YET ANOTHER INTERACTIVE LESSON ON DYNAMICS OF MARKETS!
DIG IN WITHIN YOURSELF
Based on what we learnt on the previous lesson, what did we say is a market?
Who are the participants within a market?
Give examples of markets.
Today's focus is on the Perfect Market structure, also known as 'perfect competition'. Here is what you need to know about this market:
A perfect market exists only as a theoretical concept in Economics, meaning that we read and learn about it in our Economics content but it does not meet the conditions of markets that do exist.
This market is characterised by many businesses which have no control or influence over price.
BODY
Alright grade 11's now lets get "in-formation". See what I did there? (Formation)
See "attach section resources" to access today's presentation on perfect market. (add a PPT ON ATTACH)
CONCLUSION
TAP INTO MY EVERYDAY KNOWLEDGE
Think of what you were introduced to today. Can you think of any business that falls under the perfect market structure? Would you want to open a business that is under perfect competition, and why?
Lesson 3: Imperfect Market - an introduction to Monopoly
WHAT IS AN IMPERFECT MARKET STRUCTURE?
- An imperfect market structure consists of firms which have excessive market power and they have no perfect competition.
- Imperfect competition implies that there are no perfect market conditions.
MONOPOLY - MONO MEANS ONE
A monopoly firm occurs when there is only 1 large seller of a unique product with no close substitiutes. This firm has the ability to control both the prices and the quantities they sell.
----------------------------------------------------------------------------------------------------------------
EXAMPLES OF MONOPOLIES IN SOUTH AFRICA
----------------------------------------------------------------------------------------------------------------
PROFITS
Due to the fact that a monopoly firm is the only seller of a unique product which has no close substitutes and they are price makers, they stand a good chance of making economic profit in the short run and long run.
A monopolist firm that is selling an unfamiliar unique product with less demand can make normal profit in the short run. De Beers can be an example as they are selling diamonds which less fortunate people would demand less due to financial constraints.They can also make an economic loss in the short run if they are paying high costs for producing their product.
Do you still remember what economic profit, normal profit and economic loss are ?
------------------------------------------------------------------------------------------------------------------------------
CHARACTERISTICS OF A MONOPOLY FIRM
See the attached audio explaining the characteristics of a Monopolistic firm in detail.
Homework and Classwork are also attached below.
Lesson 4: Imperfect Market - an introduction to Monopolistic competition
MONOPOLISTIC COMPETITION
This firm is a combination of both Monopoly and Perfect Competition characteristics, hence the name 'Monopolistic Competition'. In a monopolistic competition firm there are many buyers and sellers who have very little influence on the price of goods and services they sell.
EXAMPLES OF MONOPOLISTIC COMPETITION
CHARACTERICS OF MONOPOLISTIC COMPETITION
Number of businesses: There are many buyers and sellers (many businesses).
Nature of product: Monopolistic competition sell differentiated producted which may have some similar characteristics. E.g. McDonald and Burger King sell burgers (similar good) but they are not exactly the same in terms of ingredients.
Product differentiation: Also known as product variation. Monopolistic competition make use of different packaging, client service, advertising to make their products slightly different from their competitiors.
Availability of information: Incomplete knowledge
Barriers to enter/exit market: There are no barriers to enter or exit the market.
Price detemination: Monopolistic competitors have little influence on prices, they are price searchers.
KINDS OF PROFITS
Now that you have been introduced to monopolistic competition, what similarities and differences can you notice about this firm in comparison to monopoly and perfect competiton?
Would you be interested in opening a firm in the imperfect market structure or perfect market structure? Support your answer.
Lesson 5: Imperfect Market - an introduction to Oligopoly
OLIGOPOLY - A market structure characterized by few large sellers who have excessive market power. Examples include: Washing powder brands, telecommunication networks, cement industries, petrol stations, etc.
*************************************************************************************************************************************
CHARACTERISTICS OF AN OLIGOPOLISTIC FIRM
THE ABOVE LISTED CHARACTERISTICS OF AN OLIGOPOLY SHALL BE EXPLAINED IN DEPTH ON THE POWERPOINT PRESENTATION ATTACHED BELOW.
COLLUSION
One of the most key characteristics that distinguishes an oligopoly from the monopoly and monopolistic competition firms.
Collusion refers to an agreement between oligopolists on how to fix prices in order to make more profit while reducing competition. Collusion can enable an Oligopoly to make economic profit both in the short run and long run, but these profits get depleted quickly due to the money spent on non-price competition strategies.
Collusion is bad for the consumers because they are the ones who are expected to pay a high price for goods and services.
Good news is that consumers have a variety of options or competitors to buy from if they cannot pay a high price.