Differentiating
Market Structures
Learner’s Module in Applied Economics
Quarter 1 ● Module 5
MARINA D. TABANGCURA
Developer
Department of Education • Cordillera Administrative Region
NAME:
TEACHER:
GRADE AND SECTION
SCORE
Department of Education • Cordillera Administrative Region
Republic of the Philippines
DEPARTMENT OF EDUCATION
Cordillera Administrative Region
SCHOOLS DIVISION OF CAR
Wangal, La Trinidad, Benguet
Published by
Learning Resource Management and Development System
COPYRIGHT NOTICE
2020
Section 9 of Presidential Decree No. 49 provides:
“No copyright shall subsist in any work of the Government of the Philippines.
However, prior approval of the government agency of office wherein the work is created
shall be necessary for exploitation of such work for profit.”
This material has been developed for the implementation of K-12 Curriculum through the
DepEd ,Schools Division of Baguio City. It can be reproduced for educational purposes
and the source must be acknowledged. Derivatives of the work including creating an
edited version, an enhancement or a supplementary work are permitted provided all
original work is acknowledged and the copyright is attributed. No work may be derived
from this material for commercial purposes and profit.
PREFACE
This module is a project of the DepEd Schools Division of Baguio City through the
Curriculum Implementation Division (CID) which is in response to the implementation of
the K to 12 Curriculum.
This Learning Material is a property of the Department of Education, Schools
Division of Baguio City. It aims to improve students’ academic performance specifically in
Applied Economics.
Date of Development
: September ,2020
Resource Location
: DepEd Schools Division of Baguio City
Learning Area
: Applied Economics
Grade Level
12
Learning Resource Type
: Module
Language
: English
Quarter/Week
: Q1/W5 and Wk 6
Learning Competency/Code
: Differentiate various market structures in terms
of:
a. number of sellers
ii
b. types of products
c. entry/exit to market
d. pricing power
e. others.
(ABM_AE12Ie-f-5-6)
ACKNOWLEDGEMENT
The developer wishes to express her gratitude to those who helped in the
development of this learning material. The fulfillment of this learning material would not
be possible without them.
Development Team
Author:
Illustrator:
Marina D. Tabangcura
Quality Assurance Team
Loida C. Mangangey
Niño M. Tibangay
EPS -LRMDS
PSDS- District 3
Learning Resource Management Section Staff
Loida C. Mangangey
EPS – LRMDS
Victor A. Fernandez
Education Program Specialist II - LRMDS
Christopher David G. Oliva
Project Development Officer II – LRMDS
Priscilla A. Dis-iw
Librarian II
Lily B. Mabalot
Librarian I
CONSULTANTS
JULIET C. SANNAD, EdD
Chief Education Supervisor – CID
SORAYA T. FACULO, PhD
Asst. Schools Division Superintendent
MARIE CAROLYN B. VERANO, CESO V
Schools Division Superintendent
iii
TABLE OF CONTENTS
Contents
Page
COPYRIGHT NOTICE ................................................................................................ ii
PREFACE .................................................................................................................. iii
ACKNOWLEDGEMENT ............................................................................................ iv
TABLE OF CONTENTS .............................................................................................. v
Differentiating.............................................................................................................. v
Market Structures ....................................................................................................... v
What I Need to Know .................................................................................................. 2
What I Know ............................................................................................................... 3
Lesson 1: Perfect Competition, Monopolistic Competition, and Contestable Markets
................................................................................................................................................................4
What’s In .................................................................................................................................. 4
What’s New.............................................................................................................................. 5
Activity: Race to the finish line! .................................................................................. 5
What’s In It ............................................................................................................................... 5
What’s More ............................................................................................................................ 8
Activity 1: What type of market is it? ........................................................................... 8
Activity 2: Mark my word! ............................................................................................ 9
Activity 3: Worth remembering! ................................................................................... 9
What I Have Learned ................................................................................................ 10
What I Can Do .......................................................................................................... 10
Activity: Planning makes perfect! .............................................................................. 10
Lesson 2: Monopoly, Duopoly, and Oligopoly ................................................................ 11
What’s In ................................................................................................................................ 11
What’s New............................................................................................................................ 11
Activity : Is more, merrier? ........................................................................................ 11
What’s In It ............................................................................................................................. 12
What’s More .......................................................................................................................... 14
Activity: The truth will set you free!............................................................................ 14
What I Have Learned ................................................................................................ 14
Activity: Worth remembering! .................................................................................... 14
What I Can Do .......................................................................................................... 15
Activity: Healthy competition! ................................................................................... 15
Assessment .............................................................................................................. 15
Additional Activity...................................................................................................... 16
Activity: Set a good example! .................................................................................... 16
ANSWER KEY .......................................................................................................... 17
REFERENCES ......................................................................................................... 18
What I Need to Know
Hello learner! This module was designed and written with you in mind. Primarily, its
scope is to help you analyze and propose solution/s to the economic problems using the
principles of applied economics.
While going through this module, you are expected to:
1. define and explain the types of market structures, and
2. describe the characteristics and distinguish the features of the different
market structures.
Now, here is an outline of the different parts of your learning module. Thedescriptions
will guide you on what to expect on each part of the module.
Icon
Label
Description
What I need to know
This states the learning objectives that you need
to achieve as you study this module.
What I know
This is to check what you already know about the
lesson on this module. If you answered all the
questions here correctly, then you may skip
studying this module.
What’s In
This connects the current lesson with a topic or
concept necessary to your understanding.
What’s New
This introduces the lesson to be tackled through
an activity.
What’s In it
This contains a brief discussion of the learning
module lesson. Think of it as the lecture section of
the lesson.
What’s More
These are activities to check your understanding
and to apply what you have learned from the
lesson.
What I have Learned
This generalizes the essential ideas tackled from
this module.
What I Can Do
This is a real life application of what you have
learned.
Post-Assessment
This is an evaluation of what you have learned
from this learning material.
Additional Activity
This is an activity that will strengthen and fortify
your knowledge about the lesson.
2
What I Know
Start by being interested to answer the items! Read each question andanswer
carefully. Choose and circle the letter of the correct answer.
1. Which refers to the characteristics of a market in where buyers and sellers
operate, and influence economic decisions?
A. Market systems
C. Market pricing
B. Market structures
D. Market interactions
2. Which comparative environment is ideal for buyers and sellers?
A. Monopolistic competition
C. Perfect competition
B. Monopoly
D. Oligopoly
3. Which refers to products that are identical or similar?
A. Differentiated
C. Heterogeneous
B. Homogeneous
D. Customized
4. Which refers to products that are made more attractive or with additional features
compared to similar products in the market?
A. Homogeneous
C. Differentiated
B. Customized
D. Augmented
5. Which refers to the capability of a person or a group of buyers to spend for goods
and services?
A. Buying decision
C. Spending limit
B. Consumer behavior
D. Purchasing power
6. A seller or company that follows or accepts the prevailing price of products in a
market is called a
.
A. Price taker
C. Price searcher
B. Price completer
D. Price builder
7. What do you call a seller or company that has the power to set the price of certain
products?
A. Price completer
C. Price builder
B. Price searcher
D. Price taker
8. Which characterizes an industry that has many sellers offering differentiated
products?
A. Perfect competition
C. Monopoly
B. Monopolistic competition
D. Contestable market
9. These are costs or expenditures made by a seller or a company that cannot be
recovered.
A. Variable costs
C. Sunk costs
B. Fixed costs
D. Overhead costs
10. Which characterizes an industry that has one seller offering a unique product in
the market?
A. Monopolistic competition
C. Duopoly
B. Oligopoly
D. Monopoly
11. Which strategy is used when a seller or company aims to increase sales and
attract customers by improving the quality of the product, choosing an accessible
location, or giving an augmented product?
A. Non-price competition
C. Open competition
B. Non-price discrimination
D. Direct competition
12. Which comparative environment refers to having two dominating sellers or
companies in the market?
A. Oligopoly
3 C. Duopoly
B. Monopoly
D. Contestable market
13. This refers to sellers or companies experiencing cost advantage, where an
increase in production decreases per unit cost.
A. Marginal utility
B. Expanding output
B. Economies of scale
C. Economies of production
14. This is a result of collaboration among few sellers on a specific price of products
in the market?
A. Perfect competition
C. Contestable market
B. Monopoly
D. Oligopoly
15. In this competitive environment, the number of sellers is not important, but the
barriers to entry or exit to market.
A. Contestable market
B. Oligopoly
B. Monopolistic competition
D. Perfect competition
Lesson 1: Perfect Competition, Monopolistic
Competition, and Contestable Markets
What’s In
You have learned that in a market, price is an element which affects the decision to buy
and the decision to sell. But at the same time, the decisions to buy and to sell also influence
price changes. Buyers dictate demand and sellers are the sources of supply. Changes in
demand and supply affect the market price. Market price or equilibrium price is determined
where demand is equal to supply or at the state of market equilibrium. Above the market
equilibrium, where there is surplus, supply is greater than demand which forces the price to
decrease. Below the market equilibrium where there is shortage, supply is less than demand
which forces the priceto increase.
Price elasticity helps determine how demand and supply changes when price changes.
It validates that demand and supply may or may not change if there is a change in price
depending on the type of product being bought by consumers and sold by suppliers. But it must
be emphasized that choosing the best value for money is always important to consumers and
suppliers. This is why consumers buying decisions rely heavily on the changes in price. At the
same time, suppliers aim for lowproduction costs.
Products also have a life cycle which affects market prices and economic decisions.
Prices tend to be high when new products are launched then prices eventually fall, when the
product is no longer popular.
As an aspiring young entrepreneur, you have now realized how important it is to set
the right prices for the products you intend to sell if you want to win over your competitors. You
must be knowledgeable about the different competitive environment existing in a market or
what is termed as market structures.
What’s New
Activity: Race to the finish line!
There are so many products and businesses in the market, and as an aspiring young
entrepreneur, you have to be competitive! Think of three (3) specific and creative ways that
will help you win over your competitors. Write your answers until you reach the finish line.
Good luck!
2. ____________________________________________________
3. ____________________________________________________
4
FINISH LINE
1. ____________________________________________________
What’s In It
Competition is part of life! You take part in school competitions, you play games with your
friends and family, or even join national and international tournaments. The experience can
have different outcomes and effects to you physically, mentally and even spiritually. The same
is true when you choose to become an entrepreneur. Youwill be experiencing different levels of
competition that will make you and yourcommunity better in all aspects of life.
Competition in economics means a rivalry among sellers or businesses in the market to
obtain more customers and earn more profit. Sellers or businesses create ways to encourage
consumers to use their purchasing power to buy the goods and services. Purchasing power
is the ability of consumers to buy products depending on their available money to spend. As
long as you have money and you are willing to spend it to buy whatever you desire, you have
that purchasing power.
In the business world, there are different degrees or categories of competition and other
market characteristics that influence economic decisions. This is referred to as market
structures. Learning about market structures will help you understand how sellers and buyers
behave. Here in lesson 1, you will learn about perfect competition, monopolistic
competition, and contestable markets. Monopoly, oligopoly, and duopoly will be later
discussed in lesson 2. These market structures will be characterized by the number of buyers
and sellers, type of products being sold, entry and exit to market, pricing power, and the access
of buyers to product information.
Products in the market can be homogeneous or heterogeneous. Homogeneous
products are goods or services that are similar and have the same purposes which give the
same satisfaction to consumers. These products are perfect substitutes of one another. When
you go to the Baguio public market, you can find saba bananas sold by many sellers. This
product is a homogeneous product because it is the same product sold by many fruit and
vegetable sellers. The saba sold by Aling Maria is the same saba sold by Aling Teresa, Mang
Pedro, Mang Kanor and so on. Heterogeneous products, on the other hand, are products that
are differentiated or made with a unqiue attribute which distinguishes them from other
competitors’ products. For example, when Aling Maria, Aling Teres, Mang Pedro and Mang
Kanor decided to make toron out of the saba they were selling, each of them thought of a
unique toron filling to compete with one another. Aling Maria made toron with kamote, Aling
Teresa made toron with langka, Mang Pedro made toron with malagkit, while Mang Kanor
made toron with cheese. This time they sold differentiated products because their toron are
made with distinct fillings, allowing their customers to choose the toron of their liking.
In the market, entrepreneurs may find it easy to start, operate and end businesses, but
there are also circumstances when it can be very difficult. This depends on the presence or
absence of barriers to the entry and exit to a market. Examples of barriers to entry to a
market are high taxes, customer loyalty—when buyers have product preferences even when
new or better products are introduced, strong brand identity—when existing brands are very
popular, and high switching cost—when changing from one product to a new product is more
expensive. Examples of barriers to exit are difficulty to sell or relocate the business because
of the uniqueness of the business, high cost of leaving the market—costs that go with closing,
selling or relocating a business, and loss of trust
and confidence fromcustomers.
5
Another factor that differentiates businesses in the market is called pricing power or
the ability of businesses or sellers to influence changes in the price of products. A business or
seller can be a price taker or a price searcher. Price takersare those that accept and follow the
existing market price. They are those who sell homogeneous products and basic commodities
like rice and wheat. Price searchers are those that have the power to set or identify the price.
They are usually makers or sellers of differentiated products.
Here are now the market structures to be differentiated based on the categories
discussed above:
Perfect competition is identified to be the ideal and most competitive market
structure because it many sellers with more opportunities to maximize profit, and at the
same time, many buyers with more opportunities to increase satisfaction. The table
below will show you the characteristics of perfect competition in the different categories:
Categories
Number of buyers
Number of sellers
Type of product
Barriers to entry/ exit
Pricing power
Product
information
buyers
of
Characteristics of Perfect Competition
many
many
homogeneous
low or none
price taker
much or complete information about the product/s
A perfect example for perfect competition is the existence of online sellers. In
social media alone, there are many “ukay-ukay” retailers where the same kinds of
second hand items are being sold such as clothes, shoes, bags, and appliances. There
are many buyers of ukay-ukay items, and they are able to have information about the
products based on what they read in the posts. If you would want to become an online
seller, it would be easy to start the business. There will also be no difficulty if you
decide to stop. But since there are many sellers and products are homogeneous, your
prices are almost similar which means that you will be a price taker. You would have to
accept and follow the existing price in the online selling business of “ukay-ukay.”
Next is monopolistic competition. It is the second most competitive market
structure where businesses or sellers offer differentiated products. Non-price
competition is undertaken where differentiation is done. Sellers may attract buyers
through creative advertising strategies or unique packaging. They may use names of
popular personalities in their ads or only reveal the positive attributes of the product.
They could also make packaging that can be re-used. Sellers or manufacturers may also
add special features to an existing product like adding flashlights to ballpens or personal
protective equipment gears (PPEs) made in fashionable designs. Because these are
improvised and differentiated products, sellers or manufacturers may influence or dictate
the price making them price searchers. The table below will show you the characteristics
of monopolistic competition in the different categories:
Categories
Number of buyers
Number of sellers
Type of product
Barriers to entry/ exit
Pricing power
Product
information
buyers
of
Characteristics of Monopolistic Competition
many, but lesser than in perfect competition
many
heterogeneous or differentiated
low or none
price searcher
few or limited information about the product/s for
advertising to become effective
6
Another market structure is the contestable market where the number of sellers
is not important, but the barriers to entry and exit to the market. Regardless of the
number of sellers, in a contestable market there must be an ease to start a business and
compete, and the absence of sunk costs. Sunk costs are expenses in opening and
operating a business which cannot be recovered. The absence of sunk costs will make it
easier for the entry and exit of a business in a market. Business should also have access
to the best available production technology. The table below will show you the
characteristics of contestable market in the different categories:
Categories
Number of buyers
Number of sellers
Type of product
Barriers to entry/ exit
Pricing power
Information about suppliers
and technology
Characteristics of Contestable Market
few or many (not important)
few or many
homogeneous or heterogeneous
low or none
price taker or price searcher
full or complete information
An example of a contestable market in Baguio City is the transient house/ room
business. If you have a house with spare rooms or living spaces, you may enter the
transient business where you rent out your place to people at a given period of time. You
do not have any sunk cost because you just made profit from what you already have.
You also have an idea when business will be at its peak which will lead you to improve
your facilities or divert to other source of income when business is slow. You also have
the option to accept and follow the existing rent rates, or you may set a competitive price
if you have other facilities that renters may use like a swimming poolor a garage for their
vehicles.
What’s More
Activity 1: What type of market is it?
Determine whether each item is a characteristic of perfect competition (PC) or
monopolistic competition (MC), or both. Circle your answer .
1. Buyers have limited knowledge of the product
PC
MC
2. Many buyers and sellers
PC
MC
3. Second most competitive market structure
PC
MC
4. Advertising is critical
PC
MC
5. Seller is a price taker
PC
MC
6. Most competitive market structure
PC
MC
7. Differentiated products
PC
MC
8. Seller is a price searcher
PC
MC
9. Buyers have complete knowledge of the product
PC
MC
10. Homogeneous products
PC
MC
Activity 2: Mark my word!
Write a brief response to each of the following questions about contestable
market.
1. What is sunk cost?
2. What is not very important in a contestable 7market?
3. What is the pricing power in this market structure?
4. What makes contestable market similar to perfect competition?
Activity 3: Worth remembering!
Fill-in the needed information to complete the table below to show the
characteristic of each market structure in the different categories.
Categories
Perfect
Competition
Monopolistic
Competition
Contestable
Market
Number of buyers
1.
7.
13.
Number of sellers
2.
8.
14.
Type of product
3.
9.
15.
Pricing power
4.
10.
16.
Barriers to entry/ exit 5.
11.
17.
Knowledge/
information
12.
18.
6.
What I Have Learned
To be properly guided as a consumer or a young entrepreneur, consider the
different market characteristics that influence your economic decisions.
Complete the paragraph by underlining the correct word in the parenthesis.
(Market structures, Competitors) will be characterized by the (number, weight) of
buyers and sellers, (types, prices) of products being sold, (entry , end) and exit to market
, (pricing , competing) power and the access of buyers to (product, feedback)
information.
What I Can Do
Activity: Planning makes perfect!
You are tasked by your entrepreneurship teacher to start brainstorming on howyou
will be able to do product differentiation on the following goods. Complete the plan
below by providing specific strategies. Explain your strategy in 3 comprehensive
sentences only.
1. sayote
Product differentiation strategy/plan:
2. ID strap/ lace
Product differentiation strategy/plan:
8
3. homemade ice cream
Product differentiation strategy/ plan:
Lesson 2: Monopoly, Duopoly, and
Oligopoly
What’s In
In lesson 1, you learned about perfect competition, monopolistic competition,
and contestable product. The table below shows you the similarities and differences of
these market structures:
Number
of buyers
Number
of sellers
Type of
Product
Perfect
Competition
many
many
similar
Barriers
to entry/
exit
low
Monopolistic
Competition
Contestable
Market
many
many
differentiated
low
many/
few -not
important
many or
few
similar or
differentited
low/
none
Market
Structure
Pricing
power
price
taker
price
searcher
price
taker or
price
searcher
Information
about the
product
complete/
full
knowledge
limited
knowledge
complete
knowledge
on the
technology
and
suppliers
The second part of this module presents the characteristics of the three (3) other
market structures which are monopoly, duopoly, and oligopoly.
9
What’s New
Activity : Is more, merrier?
You and your other friends came together to discuss how to start a business, but
as you brainstorm you started to agree on certain ideas, but also disagreed on some
ideas. Reflecting on what happened, make a list of the advantages and disadvantages of
starting a business alone and doing business with your friends.
DOING BUSINESS ALONE
ADVANTAGES
DISADVANTAGES
+
-
+
-
+
-
DOING BUSINESS WITH OTHERS
ADVANTAGES
DISADVANTAGES
+
-
+
-
+
-
What’s In It
Aside from perfect competition, monopolistic competition, and contestable market,
there are three (3) other market structures you need to understand: monopoly,
duopoly, and oligopoly. Like in lesson 1, these will be differentiated according to the
number of buyers and sellers, type of product, pricing power, barriers to entry/ exit to the
market, and knowledge about the product or business.
A monopoly is the least competitive market structure because there is only one
(1) seller of a product that has no close or perfect substitutes. Prices of these productsare
usually dictated by monopolies. The reasons why monopolies exist are the following: (1)
the company has the only access to resources needed to make the product, which can
be expensive for other companies to produce; (2) the company has the technology to
produce more of the product at a less per unit cost, or each unit of the product costs
lesser to make when a company produces more
10 of it which is referred to economies of
scale; and (3) the company has the legal right or the patentto produce or sell the product.
These are also the conditions that make it difficult for other companies to enter the
market. Monopolies can be problematic because there is a tendency for prices to
increase above and beyond what buyers can afford. This is especially true when the
product or service is a necessity. The table below will show you the characteristics of a
monopoly in the different categories:
Categories
Number of buyers
Number of sellers
Type of product
Barriers to entry/ exit
Pricing power
Buyer information of
product
the
Characteristics of a Monopoly
many
one
highly differentiated/ unique; public utilities
high
price searcher
limited
An oligopoly market structure is dominated by a few sellers or companies. These
companies work interdependently to achieve maximum profits. Collusion happens
among these companies to agree on a price levels, which can be a disadvantage to
consumers because prices are set higher than expected. And because products of
oligopolies are necessities, people have no choice but to buy them. Take for example oil
companies. Producers of oil from around the world agree on the price of oil and impose
the price on consumers. The table below will show you the characteristics of an oligopoly
in the different categories:
Categories
Number of buyers
Number of sellers
Type of product
Barriers to entry/ exit
Pricing power
Buyer information of
product
the
Characteristics of an Oligopoly
many
few
homogeneous or slightly differentiated
high
price searcher
limited
Finally, duopoly is a market structure with only two (2) sellers or companies, but
in reality, these are the two (2) biggest companies offering the product. Collusions also
happen in a duopoly where the two companies agree on the price to impose on buyers
to achieve maximum profit. The best example of a duopoly is the two very popular brand
of carbonated drinks or softdrinks in the Philippines. Even with the existence of other
small companies, these two giants of softdrinks dominate the market. The table below will
show you the characteristics of an oligopoly in the differentcategories:
Categories
Number of buyers
Number of sellers
Type of product
Barriers to entry/ exit
Pricing power
Buyer information of
product
the
Characteristics of a Duopoly
many
two dominating companies
homogeneous or slightly differentiated
high
price searcher
limited
11
What’s More
Activity: The truth will set you free!
Write TRUE if the statement is correct, and FALSE if the statement is wrong.
1.
Monopoly is the least competitive market structure.
2.
Collusion happens only in a monopoly.
3.
Products in a duopoly is slightly differentiated.
4.
In a monopoly, the company has limited access to available technology.
5.
There are few sellers in an oligopoly.
6.
In economies of scale, increasing the production decreases the cost of
producing each additional unit of the product.
7.
There are two (2) dominant companies in a duopoly.
8.
The main goal of monopoly, oligopoly, and duopoly is to maximize profit.
9.
Sellers in oligopoly are price takers.
10. Barriers to entry is high in a duopoly.
What I Have Learned
Activity: Worth remembering!
Fill-in the needed information to complete the table below to show the
characteristic of each market structure in the different categories.
Categories
Number of buyers
Number of sellers
Type of product
Pricing power
Barriers to entry/ exit
Knowledge/
information
Monopoly
1.
2.
3.
4.
5.
6.
Oligopoly
7.
8.
9.
10.
11.
12.
12
Duopoly
13.
14.
15.
16.
17.
18.
What I Can Do
Activity: Healthy competition!
What would life be without competition? Read and understand the following
statements then in one sentence, explain what each statement personally means to
you. Make sure to relate your insights to the concept of competition. You may give
practical examples if you wish.
1. No competition, no progress.
2. “The best way to kill competition is to partner it.”
3. “We rise by lifting others.”
Assessment
You are amazing! With your knowledge about market structures, match columnA
with the correct answer on column B.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
A
Result of collaboration among few sellers on a
specific price of products in the market.
Refers to products that are made more attractive
or with additional features compared to similar
products in the market.
Sellers or companies experiencing cost
advantage, where an increase in production
decreases per unit cost.
A competitive market environment where buyers
and sellers operate, and influence economic
decisions.
The comparative environment is ideal for buyers
and sellers.
A seller or company that follows or accepts the
prevailing price of products in a market.
Products that are identical or similar.
A comparative environment refers to having two
dominating sellers or companies in the market.
The capability of a person or a group of buyers is
to spend for goods and services.
A seller or company that has the power to set the
price of certain products.
An industry that has many sellers offering
differentiated products.
When a seller or company aims to increase sales
and attract customers by improving the quality of
the product, choosing an accessible
13 location, or
giving an augmented product.
Costs or expenditures made by a seller or a
company that cannot be recovered.
An industry that has one seller offering a unique
product in the market.
In this market structure the number of sellers is
not important, but the barriers to entry or exit.
B
A. Economies of scale
B. Price searcher
C. Perfect competition
D. Non-price competition
E. Differentiated products
F. Purchasing power
G. Sunk costs
H. Monopoly
I. Oligopoly
J. Price taker
K. Contestable market
L. Monopolistic competition
M. Duopoly
N. Homogeneous products
O. Market structures
Additional Activity
Activity: Set a good example!
Match one market structure to each market example listed below. Answers can be
used more than once. Number 1 is already given (Bonus)
Monopoly 1.
2.
3.
_______________
_______________
_______________
_______________
_______________
_______________
_______________
_______________
______________ \
10
4.
5.
6.
7.
8.
9.
One electric company in the city
Baguio beans sold in the public market
Band X - shampoo
Brand Y- shampoo with coconut oil
Brand Z- shampoo with coconut oil and long-lasting fragrance
Brand A- shampoo with free hair gel
Two dominant companies of mineral water
Companies that produce oil.
Candles sold by vendors around the church
Transient rooms and houses
On-line sellers
Showing only the positive side of drinking coffee in an advertisement
10.The only producer of banana stalk pots in a region.
14
ANSWER KEY
15