Unit Outline

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AP MICROECONMICS-

Unit #3 Ippolito Spring 2016

Market Structures

Unit #3 Overview: In this unit we examine the 3 most common market structures in the U.S. economy: Monopoly, Oligopoly &

Monopolistic Competition. Our economic model of Perfect competition will be our comparison benchmark as we determine how each market structure finds market equilibrium as well as calculate the costs & benefits of each market structure.

Topic I Monopoly Chapter 15 (311-335)

Monopoly, , profit-maximizing rule, natural monopoly, deadweight loss, Anti-Trust Laws, economies of scale, price discrimination, perfect price discrimination

Topic II Oligopoly Chapter 16 (345-360)

Oligopoly, Prisoner’s dilemma, dominant strategy, Nash Equilibrium, excess capacity, non-collusive oligopoly, collusion, oligopoly, Cartel, concentration ratio

Chapter 17 ( 373-386) Topic III: Monopolistic Competition

Monopolistic Competition, incentive to advertise, excess capacity

Friday February 26 th

Monopoly & Anti-trust Laws

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Monday February 29 th

Marginal Revenue & Monopolies

Reading for Week: Pages 311-335

Tuesday March 1 st

Monopolies vs. Perfect Competition

Thursday March 3 rd

Monopolies & Deadweight Loss

Diamonds: DeBeers & the free market

Friday March 4 th

Price Discrimination

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Monday March 7 th

Practice Test & Free Response

Reading for Week: Pages 345-360

Tuesday March 8 th

Oligopolies and Game theory

Thursday March 10 th

Oligopoly Pricing

Friday March 11 th

Practice Tests

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Monday March 14 th

No SchoolStaff Development Day

Tuesday March 15 th

Monopolistic Competition

Reading for Week: Pages 373-386

Thursday March 17 th

Last Unit Free Response, Practice Test

Friday March 18 th

TBA

Monday March 21 st

Practice MC test & study guide time

Tuesday March 22 nd

Practice Free Response

Thursday March 24 th

Unit Test: Multiple Choice & Free Response

Due: Study Guide #3

MR = MC

This will maximize profit for all market structures!

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