Four Market Structures Exercises
Market structure
Number of firms
Control over price Type of goods
Ease of market
Answers
entry
Many, few, one
None, little,
Some/a lot, total
Different, identical, Easy/difficult
unique
Many
None
Identical
Easy
Monopolistic
competition
Many
Little
Different
Easy
Oligopoly
Few
Some/A lot
Perfect
competition
Difficult
Different/Identical
Monopoly
One
Total
Unique
Difficult
Classroom Inflation
Simulation
Each person in this class is a Food Truck owner
 What are your actions in response to
the Foam Ban?
www.nytimes.com
Business Environment Analysis - PEST tool
EXTERNAL
POLITICAL
ECONOMICAL
SOCIAL
TECHNOLOGICAL
Business Environment Analysis - PEST tool
INTERNAL
POLITICAL
ECONOMICAL
SOCIAL
TECHNOLOGICAL
What is money?
Money – anything widely accepted in exchange for goods and services.
Auction Rules
• A, B, C groups
• Five items will be auctioned in each of the 2 rounds
• Money left in round 1 can be used in round 2
• The highest bidder will win each item

The highest bid is your total minus $1. The lowest bid is $1

You can't spend all your money on one item
• The five items represent total output of goods and services
produced in the classroom economy
• You may not combine your money with anyone else’s in the room
Auction
Product
Total GDP
Round 1 price
Product
Total GDP
Round 2 price
Discussion
 What happened to prices in Round 2 compared with those in Round 1?
 Were the goods in the auctions different in any way?
 Were there any more items available to buy in Round 2 than in Round 1?
 Why were prices higher in Round 2?
What is inflation
Amount of money injected into an economy
outstrips the increase in actual output.
Each dollar of income will buy fewer goods and services than before
People have more money to spend, but there will be the same quantity of
product available for them to buy. As they compete with one another to buy
available products or services prices go up.
Demand-pull and cost-push inflation