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Demand &Supply,[object Object],COMPETITIVE MARKETS,[object Object],created for:,[object Object],IB Economics,[object Object],building on the work of:,[object Object],Jason Welker,[object Object]
The Market,[object Object]
market,[object Object],The Nature of Markets,[object Object]
a place where buyers and sellers come together and exchange goods &services,[object Object],market,[object Object],The Nature of Markets,[object Object]
like the butcher, the grocerystore, or the internet,[object Object],market,[object Object],The Nature of Markets,[object Object]
they can be local, national, and also international,[object Object],market,[object Object],The Nature of Markets,[object Object]
they can be local, national, and also international,[object Object],market,[object Object],Can you give an example of each type of market?,[object Object],The Nature of Markets,[object Object]
they fall into two categories:,[object Object],productmarketsor,[object Object],resourcemarket,[object Object],market,[object Object],The Nature of Markets,[object Object]
product market,[object Object],The Nature of Markets,[object Object]
is the purchase of consumer goods & services directly from the producers,[object Object],product market,[object Object],The Nature of Markets,[object Object]
product market,[object Object],like a computer from,[object Object],The Nature of Markets,[object Object]
product market,[object Object],or an ,[object Object],The Nature of Markets,[object Object]
product market,[object Object],from a farmer,[object Object],The Nature of Markets,[object Object]
resource market,[object Object],The Nature of Markets,[object Object]
is the purchase of the factors of production: land, labor, capital, and entrepreneurship by businesses of individuals and families,[object Object],resource market,[object Object],The Nature of Markets,[object Object]
resource market,[object Object],like trees from a family owning a forest,[object Object],The Nature of Markets,[object Object]
CompetitiveMarkets,[object Object]
is one with a large numbers of buyers and sellers, limiting the power of a single firm,[object Object],competitivemarkets,[object Object],The Nature of Markets,[object Object]
they bring about diversity of goods, efficiencies, and a general greater wealth,[object Object],competitivemarkets,[object Object],The Nature of Markets,[object Object]
markets are “free” when they can openly attempt to win business away from others,[object Object],competitivemarkets,[object Object],The Nature of Markets,[object Object]
Market Structures,[object Object]
4 types of market structure:,[object Object],market structures,[object Object],The Nature of Markets,[object Object]
4 types of market structure:,[object Object],monopoly| oligopolymonopolistic competition perfect competition,[object Object],market structures,[object Object],The Nature of Markets,[object Object]
4 types of market structure:,[object Object],monopoly | oligopolymonopolistic competition perfect competition,[object Object],market structures,[object Object],The Nature of Markets,[object Object]
4 types of market structure:,[object Object],monopoly | oligopolymonopolistic competition perfect competition,[object Object],market structures,[object Object],The Nature of Markets,[object Object]
4 types of market structure:,[object Object],monopoly | oligopolymonopolistic competition perfect competition,[object Object],market structures,[object Object],The Nature of Markets,[object Object]
4 criteria are used to categorize,[object Object],# of firms | firm’s level of power | product differentiation between firms | ease of entry and exit,[object Object],market structures,[object Object],The Nature of Markets,[object Object]
4 criteria are used to categorize,[object Object],# of firms | firm’s level of power| product differentiation between firms | ease of entry and exit,[object Object],market structures,[object Object],The Nature of Markets,[object Object]
4 criteria are used to categorize,[object Object],# of firms | firm’s level of power| product differentiation between firms| ease of entry and exit,[object Object],market structures,[object Object],The Nature of Markets,[object Object]
4 criteria are used to categorize,[object Object],# of firms | firm’s level of power| product differentiation between firms|ease of entry and exit,[object Object],market structures,[object Object],The Nature of Markets,[object Object]
perfect competition,[object Object],The Nature of Markets,[object Object]
very few firms,[object Object],perfect competition,[object Object],The Nature of Markets,[object Object]
very few firms,[object Object],firms don’t influence supply,[object Object],perfect competition,[object Object],The Nature of Markets,[object Object]
very few firms,[object Object],firms don’t influence supply,[object Object],firms make identical products,[object Object],perfect competition,[object Object],The Nature of Markets,[object Object]
very few firms,[object Object],firms don’t influence supply,[object Object],firms make identical products,[object Object],entry & exit easy,[object Object],perfect competition,[object Object],The Nature of Markets,[object Object]
is quite theoretical, though commodities markets(such as corn, wheat, etc.) do come close,[object Object],perfect competition,[object Object],The Nature of Markets,[object Object]
monopolistic competition,[object Object],The Nature of Markets,[object Object]
many firms,[object Object],monopolistic competition,[object Object],The Nature of Markets,[object Object]
many firms,[object Object],firm’s decisions barely effect market,[object Object],monopolistic competition,[object Object],The Nature of Markets,[object Object]
many firms,[object Object],firm’s decisions barely effect market,[object Object],relatively different ,[object Object],goods,[object Object],monopolistic competition,[object Object],The Nature of Markets,[object Object]
relatively low barriers to entry,[object Object],monopolistic competition,[object Object],The Nature of Markets,[object Object]
monopolistic competition,[object Object],The Nature of Markets,[object Object],Can you give an example of a type of company that would fit this description?,[object Object]
oligopoly,[object Object],The Nature of Markets,[object Object]
few dominant firms,[object Object],oligopoly,[object Object],The Nature of Markets,[object Object]
few dominant firms,[object Object],significant control over price,[object Object],oligopoly,[object Object],The Nature of Markets,[object Object]
few dominant firms,[object Object],significant control over price,[object Object],same or different products,[object Object],oligopoly,[object Object],The Nature of Markets,[object Object]
few dominant firms,[object Object],significant control over price,[object Object],same or different products,[object Object],barrier to entry high,[object Object],oligopoly,[object Object],The Nature of Markets,[object Object]
few dominant firms,[object Object],significant control over price,[object Object],same or different products,[object Object],barrier to entry high,[object Object],oligopoly,[object Object],The Nature of Markets,[object Object]
oligopoly,[object Object],The Nature of Markets,[object Object],What real-world firms represent an oligopoly?,[object Object]
monopoly,[object Object],The Nature of Markets,[object Object]
only one firm,[object Object],monopoly,[object Object],The Nature of Markets,[object Object]
only one firm,[object Object],firm sells to whole market,[object Object],monopoly,[object Object],The Nature of Markets,[object Object]
only one firm,[object Object],firm sells to whole market,[object Object],no substitute products exist,[object Object],monopoly,[object Object],The Nature of Markets,[object Object]
only one firm,[object Object],firm sells to whole market,[object Object],no substitute products exist,[object Object],high barrier to entry,[object Object],monopoly,[object Object],The Nature of Markets,[object Object]
market structure & power,[object Object],The Nature of Markets,[object Object],most market power,[object Object],monopoly,[object Object],oligopoly competition,[object Object],least market power,[object Object],monopolistic competition,[object Object],perfect competition,[object Object]

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Competitive markets demand and supply

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