Transcript Types of Markets - Manchester High School

By The MAN!!!!
 1. Large number of producer
 2. All produce the same product
 3. They are a "price taker"
 4. No obstacles in or out of market
 5. Limited advertising and government intervention
 6. At mercy of market. Has profit over time.
Examples: Agriculture- beef, pork.
 One Producer
 Unique Product
 Entry is nearly impossible
 Price maker
 Informative advertising – lure away from competition
 Legalized by government – patents/copyrights
 Creates homogenous standard of living
 Leads to inefficiency and the consumer pays for it
 We all get utilities
 We all get utilities so business must cover/recoup cost
 Resource monopolies – key natural resources
 Government monopolies
 Patents and copyrights
 License/public franchise
 Natural monopolies
 A single firm does it best in an area
 Utilities,
 Economies of scale
 Market of a few- the few dominate the market
 Different oligopoly-different products
 Cars
 Cola
 Non-different- products are like
 Aluminum
 Steel
 Entry into market is blocked
 Mutual interdependency- agree how to react to market
 Limited government intervention
 Price maker- mostly
 Compete in non-price competition
 Cost
 Styles
 Services
 NEVER PRICE
 Action –reaction-action
 Producers manipulate the demand curve with non-
price factors
 Lowering price only makes all producer make less
money (price is not at demand shifter)
 Large number of producers
 Slightly different product
 Price maker- different product=different product
 No obstacles
 Limited government intervention
 Clothing, Shoes, restaurant, college
 You make choices by Brand Name
 Only lose in short run- they manipulate the demand
curve. (They can compete with price but they do not
want to)
MacDonald's
 1.
Burger King
Taco Bell
 Can’t lower price they are all ready losing
 Lower cost without decreasing output
 Produce new product rival does not have