1 / 9

Understanding Market Spectrum in Economics

Learn about perfect competition, monopoly, oligopoly, and monopolistic competition, as well as industry concentration and methods of restricting competition in the Canadian market, along with benefits of large-scale operations and government regulations. Discover key concepts to navigate market structures effectively.

rhildebrand
Download Presentation

Understanding Market Spectrum in Economics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Ch. 7: A Spectrum of Markets GR. 11 ECONOMICS (CIE3M1) M. Nicholson

  2. Perfect Competition • Many sellers of identical product • Easy to enter the industry • No control over price and no advertising • Examples – stock market, agriculture

  3. Monopoly • One seller and no substitutes • Very difficult or impossible to enter the industry • Price-maker  much control over price • Advertise to improve image • Examples  water, urban transit, cable

  4. Oligopoly • Homogeneous: some product distinction • Differentiated: much product distinction • Few sellers and difficult to enter • Some control over price • Much advertising for differentiated • Automobiles, beer differentiated • Steel, cement homogeneous

  5. Monopolistic Competition • Many sellers with some product distinction • Easy to enter the industry, but a little control over price • Lots of advertising • Examples  Fast food, clothing

  6. Concentration In Canadian Industry • Concentration ratio measures the proportion of industry’s sales by top 4 and top 8 • Tobacco, oil and transportation equipment have little competition

  7. Restricting Competition • Unfair competition • Establishing a cartel • Interlocking directorates • Mergers • Horizontal, vertical, conglomerate mergers • Establishing a holding company

  8. Advantages Of Large-Scale Operations • Money available for research to develop new and better products and more efficient, cheaper production methods • Large quantity production allows for specialized machinery (capital) and labour (human) that increases efficiency and lowers cost (e.g. automobiles)

  9. Government Regulation • Government Ownership – natural monopolies • Laws to promote competition • Regulation of prices and services

More Related