Unit Three: Lesson
Three-Monopolies
Kirby
World History
CHS
UNIT LEARNING OBJECTIVES:
North Clackamas School District Social
Studies Priority Standards:

HK 2. Analyze the complexity and
investigate causes and effects of significant
events in World History.
LESSON THREE : DAILY LEARNING TARGET
I Can….Describe in writing the types of
monopolies that can exist in a given
economy
USE THE CORNELL NOTE TEMPLATE FOR
OF YOUR NOTES TODAY!
Focus Up and……
Relax and enjoy the ride
In History Class!
Market Structures II.
Market Structures
[How many sellers in each industry]
Last time we met, we
looked
at the
influence of……..
Brainstorm in you group
5 of the “Advertising Appeals”
we learned about last time.
Types of Advertising Appeals
Testimonials
A television star or someone who appears to be an
authority tells you that a product is the best.
Bandwagon Appeal
Everyone is doing it. It is the thing to do.
Scare Tactics
You or your family will be safer or healthier with
this product.
Appeal to Individual Feelings
You will feel like a million bucks if you use this.
Sex Appeal
You will get more dates if you use this product.
Or, the ad seems to be selling sex appeal.
The Folksy Appeal
Just like mom used to make.
The Numbers Game
“3 out of 4 doctors surveyed recommend this item.”
“What Will Others Think?”
Makes you worry about your appearance. “Ring around the collar.”
Snob Appeal $$$
Using status to sell. “Available only at fine department stores”.
• A great icon of the entertainment community has
died today at age 71, the Pillsbury Doughboy.
• He died yesterday of a yeast infection and
complications from repeated pokes in the belly.
• Doughboy was buried in a lightly greased coffin. Dozens
of celebrities turned out to pay their respects, including
Mrs. Butterworth’s, Hungry Jack, the California Raisins,
Betty Crocker, the Hostess Twinkies, & Captain Crunch.
• The gravesite was piled high with flours. Aunt Jemima
delivered the eulogy and lovingly described Doughboy
as a man who never knew how much he was kneaded.
• Doughboy rose quickly in show business, but his later life was filled
with turnovers. He was not considered a very smart cookie, wasting
much of his dough on half-baked schemes. Despite being a little flaky
at times he still, as a crusty old man, was considered a roll model for
millions.
• Doughboy is survived by his wife, Play Dough; two children,
John Dough and Jane Dough; plus they had one in the oven.
He is also survived by his elderly dad, Pop Tart. The funeral
was held at 3:50 for about 20 minutes.
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Choosy mothers choose _______.
Jiff
It is the only pain reliever that you need ....
Bayer
How do you spell relief?
Rolaids
Come fly the friendly skies.
United Airlines
Be one of the few, the proud, the...
U.S. Marines
Just for the taste of it.
Diet Coke
Many
Coke products have 43% of the market and Pepsi products have 32%.
1. Coke Classic
2. Pepsi Cola
3. Diet Coke
4. Mountain Dew
5. Diet Pepsi
6. Sprite
7. Dr. Pepper
8. Caffeine Free Diet Coke
9. Diet Dr Pepper
10. Sierra Mist
Pepsi’s first commercial in 1939 became so popular, it became
a hit record and was played in jukeboxes. A 12-ounce bottle sold
for a nickel. Here it is.
Big 3 Subscribers[mil.]
51.6 M
47.4 M
AT&T Verizon
Wireless Wireless
Oligopoly Examples
40.4 M
Market Share of CellPhone Sales
Samsung 25% Apple
7.5%
L.G.Tel. 21%
Sprint Motorola 16%
Nextel
Shox is Nike’s latest
hot seller. It is modeled
on a 10,000 year old
sandal discovered in
an Oregon cave.
1.
2.
3.
4.
Nike
36.4%
Reebok
12.5%
New Balance 10.9%
Adidas
9.1%
“Adidas 1” at $250,
uses an in-sole computer to
adjust its heel cushioning to changes in the running surface.
The heel contains a wafer-thin sensor and magnet that monitors the amount of
shock applied to the foot and adjusts the footbed 1,000 times per second. Adidas
executives hope this shoe will be their iPod. [one of those “gotta-have” items]
This shoe is called as a “smart”
At $250, it should be a genius.
heavier than
other shoes, has no reflective
trim, & come in only one width.
Be smart. Buy a dumber shoe.
You’ll save more than $150.
However, it is 1/3
shoe.
Monopolistic Competition
[element of monopoly [differentiation uniqueness] so called
monopolistic competition]
This is the most common market structure – over 99% of all firms.
Examples of Monopolistic Competition
Blue Jeans
Dry Cleaners
Shoe Stores
Toothpaste
Restaurants
Barbershops
Grocery Stores
Rock Concerts
Cassette players
Book Stores
Vacuum Cleaners
Beauty Parlors
Candy Bars
Pizza
Chicken
Soaps and detergents
Furniture Stores
Econ Textbook Co’s
“Econ”
A monopoly is a market dominated
by a single seller.
Monopoly
A monopoly is a market dominated by a
single seller.
In general, monopolies are illegal.
Monopolies lead to higher prices, inferior
quality of products, and reduced supply.
Monopolies can lead to higher prices.
Monopolies do not benefit consumers.
DART
Basic Cable Rate
Forney High
Greyhound
Waste
DART
Management
Government Monopoly
Owned & operated by G
Ex: U.S. Mail
State Highways
U.S.Mail
“Price
Natural Monopoly
Competition would be
chaotic. It is natural
to give it to one co.
Ex: Utilities
Cable TV TXU
Makers”
Monopoly
Rubik’s
Cube
Cable TV
[mono(1) poly (seller)]
Control over price: Total
Product: unique
Ex: Comcast Cable TV
Technological Monopoly
“Patent”
Ex: Rubik’s Cube
Cable TV
Geographic Monopoly
Only seller in a specific area
Example: Remote Store
Monopoly – the “power of one”
• Where competition
• Ex’s are utility companies would be chaotic,
and cable TV
therefore, it is natural
to give the business
to one firm
• They are privately
owned, but regulated
by the government
• Market where
average costs are
lowest when all
output is produced by
a single firm
State G
Pilot Point High Federal G
[Local G]
Dart
Dart
• The Government has control over:
• U.S. Mail,
• State highways, and
• Public schools
Another mugging
at Bryan Adams
Bryan
Adams
Examples of Geographic Monopoly
• “Last Chance Gas Station”
Last Chance Gas
• A general store in the
middle of nowhere
Name : _________________
Market Structure Word Scramble
Period: _________
[From the word scramble below, pick out the 5 correct answers for each market structure]
Oligopoly
1._______________________
2._______________________
Directions:
3._______________________
Fill in the chart to the left
4._______________________
with the red bold face words5._______________________
on the screen. (20 pts.)
Perfect Competition
1._______________________
2._______________________
3._______________________
4._______________________
5._______________________
Pure Monopoly
1._______________________
2._______________________
3._______________________
4._______________________
5._______________________
Monopolistic Competition
1._______________________
2._______________________
3._______________________
4._______________________
5._______________________
Name 1. ________________
Name 2.________________ Market Structure Word Scramble
[From the word scramble below, pick out the 5 correct answers for each market structure]
*Write the bold face type.
Oligopoly
1._______________________
2._______________________
3._______________________
Natural, Geographic,
4._______________________
Technological, & Gov.
5._______________________
Perfect Competition
Nike, Reebok, New
1._______________________
Balance, and Adidas
2._______________________
Homogeneous product 3._______________________
4._______________________
[Identical]
5._______________________
Pure Monopoly
Identical (pure) or
differentiated products 1._______________________
2._______________________
3._______________________
Price Leadership
4._______________________
is used
5._______________________
Polaroid Instamatic
Monopolistic Competition
McDonald’s, Wendy’s, 1._______________________
2._______________________
and Burger King
3._______________________
Product differentiation 4._______________________
5._______________________
gives an element of monopoly
A few control 70%
of the market
Very many (100’s) sellers
Price takers
Many [25-75] sellers
One seller
Easiest to enter
Comcast Cable TV
Economics (college)
Textbook Companies
(over 50 of these and they
are differentiated
Black eyed peas
[that you eat]
Blue Jean Companies
(dozens and differentiated)
Price Maker
Beauty Shop
Name 1. ________________
Name 2.________________ Market Structure Word Scramble
[From the word scramble below, pick out the 5 correct answers for each market structure]
*Write the bold face type.
Oligopoly
1. Few control 70%
2. Nike, Reebok, N.Bal., & Adidas
3. Identical or differentiated
Natural, Geographic,
4. Price Leadership
Technological, & Gov.
5. McD’s, Wendy’s, & Burger King.
Perfect Competition
Nike, Reebok, New
1. Easiest to enter
Balance, and Adidas
2. Homogeneous product
Homogeneous product 3. Very many sellers
4. Price Takers
[Identical]
5. Black eyed peas
Pure Monopoly
Identical (pure) or
differentiated products 1. Nat, Geog, Tech, & Gov.
2. Polaroid Instamatic
3. One seller
Price Leadership
4. Comcast Cable TV
is used
5. Price Maker
Polaroid Instamatic
Monopolistic Competition
McDonald’s, Wendy’s, 1. Product differentiation
2. Many sellers
and Burger King
3. Econ Textbook Co’s
Product differentiation 4. Blue jean companies
5. Beauty Shop
gives an element of monopoly
A few control 70%
of the market
Very many (100’s) sellers
Price takers
Many [25-75] sellers
One seller
Easiest to enter
Comcast Cable TV
Economics (college)
Textbook Companies
(over 50 of these and they
are differentiated
Black eyed peas
[that you eat]
Blue Jean Companies
(dozens and differentiated)
Price Maker
Beauty Shop
Work Time
WHEN YOU ARE FINISHED with
the “Market Structure Word
Scramble” ….Work On:
“Market Structure Worksheet.
We will have a SUMMATIVE QUIZ NEXT
WEEK OVER MARKET STRUCTURES (50
questions-Open Notes>