1. BellringerBellringer
1. How many players win the1. How many players win the
game “Monopoly” if yougame “Monopoly” if you
play it until the end?play it until the end?
No we won’t be playing it inNo we won’t be playing it in
this class.this class.
2.2. How manyHow many suppliers sellsell
lunch here at Pueblo?lunch here at Pueblo?
3.3. How would things changeHow would things change
if TUSD allowed multipleif TUSD allowed multiple
sellers during lunch?sellers during lunch?
4.4. Get out your notes:Get out your notes:
Cornell notes topic:
Monopolies

2. 4 Market Structures4 Market Structures
MonopolyMonopoly
Monopolistic CompetitionMonopolistic Competition
Perfect CompetitionPerfect Competition
OligopolyOligopoly

3. MonopolyMonopoly
 A market for aA market for a
good/service withgood/service with oneone
dominate sellerdominate seller
 Firm hasFirm has totaltotal “pricing“pricing
power”power”
 Has extremely highHas extremely high
entry costs, ORentry costs, OR
impossibleimpossible

4. Types of surplusTypes of surplus
 Consumer surplusConsumer surplus: difference between budget and: difference between budget and
actual priceactual price
 Producer surplusProducer surplus: difference between cost and price: difference between cost and price
(really just profit)(really just profit)
Budget:
$50
Actual:
$40

6. Draw less supply on boardDraw less supply on board
 What happens to CS?What happens to CS?

7. Price DiscriminationPrice Discrimination
Think/Pair/Share
Examples?
Senior
discount
Student
discount
Ebay

8.  Santa Barbara, CASanta Barbara, CA

9.  ArgentinaArgentina

10. Types of MonopolyTypes of Monopoly
 GeographicGeographic
 Only firm in aOnly firm in a
certain areacertain area
 FencesFences
 Small townsSmall towns
 OtherOther
example?example?
 Draw PESTDraw PEST
change onchange on
boardboard

11. Types of MonopolyTypes of Monopoly
 GovernmentGovernment
 Granted by theGranted by the
governmentgovernment
 ““public utilities”public utilities”
 Reasoning?Reasoning?

12. Types of MonopolyTypes of Monopoly
 TechnologicalTechnological
 Due toDue to
technologytechnology
 (Patents)(Patents)
 (Copyrights)(Copyrights)
 Software,Software,
biotechnology,biotechnology,
artisticartistic
 Reasoning?Reasoning?
 examplesexamples

13. Group skits on the 3 types of monopolyGroup skits on the 3 types of monopoly
 GeographicGeographic
 TechnologicalTechnological
 GovernmentGovernment
 Rules:Rules:
 Each group member must talkEach group member must talk
 0 if you say that name of your type0 if you say that name of your type
 Must show the effect monopoly has on pricesMust show the effect monopoly has on prices
 +5 QE if every group is able to guess your type+5 QE if every group is able to guess your type

14. On your BROn your BR
Name the type of monopoly & whyName the type of monopoly & why
4.4. Fernanda designs a new game appFernanda designs a new game app
5.5. Popcorn at Harkins movie theaterPopcorn at Harkins movie theater
6.6. Interstate Highways like I-10 or I-19Interstate Highways like I-10 or I-19
7.7. The only mechanic Ajo, ArizonaThe only mechanic Ajo, Arizona
8.8. School lunches at PuebloSchool lunches at Pueblo
9.9. Snacks in certain Pueblo classroomsSnacks in certain Pueblo classrooms
10.10. Secret recipe for GatoradeSecret recipe for Gatorade
11.11. US militaryUS military
12.12. Tucson Water CompanyTucson Water Company
13.13. Expensive soda at a baseball gameExpensive soda at a baseball game

15. Closure questionsClosure questions
4. Why do economists worry about4. Why do economists worry about
monopolies? (hint: think about prices)monopolies? (hint: think about prices)
5. Why are technological monopolies allowed5. Why are technological monopolies allowed
to exist? (think about creative businesses)to exist? (think about creative businesses)
6. Do you think government monopolies are6. Do you think government monopolies are
always positive for consumers? (consideralways positive for consumers? (consider
our school lunches, or the AZ MVD)our school lunches, or the AZ MVD)

16. Geographic
Government
Technological
Geographic
Government
Technological
Geographic
Government
Technological
Geographic
Government
Technological
Geographic
Government
Technological
Geographic
Government
Technological

17. Min Wage readingMin Wage reading
questionsquestions
1.1. Graph paragraph #2Graph paragraph #2
2.2. How do employers react to min. wage increase? (pgHow do employers react to min. wage increase? (pg
3-4)3-4)
3.3. How does the author think employees will to react toHow does the author think employees will to react to
getting the low skilled jobs? (pg 6-7)getting the low skilled jobs? (pg 6-7)
4.4. Would the author support reducing the minimumWould the author support reducing the minimum
wage for people aged 15-20?wage for people aged 15-20?
5.5. Using your S/D graph, describe of 2 benefits to theUsing your S/D graph, describe of 2 benefits to the
economy if the minimum wage was reduced foreconomy if the minimum wage was reduced for
people aged 15-20.people aged 15-20.