Schools Division Office – Marikina City

Parang High School

Senior High School

NAME: John Wilson C. Gantia Grade & Section: 12 ABM - ENVIRONMENTAL

Date: 2/23/21

Activity Sheet # 23 in Applied Economics

Activity Title: “Market Structures”
Learning Competency:
1. Differentiate various market structures in terms of number of sellers, types of
products, entry/exit to the market, pricing power, etc.
1.1 Define monopoly, oligopoly, monopolistic competition and perfect competition
1.2 Explain reasons for existence of the market structures
1.3 Distinguish the market structures from one another
1.4 Identify how firms operate in each market structure

Part I Directions: Based on what you have learned regarding the market structures,
describe the differences of the 4 market structures by writing down your answers on the
column on each headings.

Infinite number of It has many firms It has few firms (up One firms in the
firms sellers and but varied to 15, sellers/ market
producers producers

It has small firms It has relatively The firms The size of the sole
small firms (sellers/producers) are firms is very large
large

The firms are price It has no firm to control The firms are price The firms are price
takers, which mean over the market price setters or the one who setters or the one
they take its price from and if there is its decide the price who decide the
the whole industry. influence over the price
price
is limited

The products are The products of the The products of the The product/services
homogeneous or firms are branded and firms are branded and is unique and often
identical and have amount of have amount of has patent giving the
brandless differentiation differentiation firm exclusive rights to
sell/produce it

New entrants are There are few barriers It has high barriers to Other firms are
allowed as there is no to entry entry the market blocked to enter the
barrier to entry market

It has minimal It has some policies The government The welfare of the general
government that exist prohibits collusion of public dictates that
regulations, except to firms government should take
active role in regulating
make markets more monopolies
competitive
Part II Directions: Identify the market structure classification of the following
goods/services. Write 2-3 sentences explaining why each falls under monopoly, oligopoly,
monopolistic competition or perfect competition.
Oligopoly market structure
Because the completion depends on the way the brand of the
firms markets their products. Coca Cola Company may end up
being affected in case other company changes its product
specification or even the price of their product.

Monopoly market structure

Because manila water and meralco are the only firm in the
market. Manila water is the one who supplies water and also
meralco only the source of our electricity.

Monopolistic competition
Because these restaurants contains more than a few firms
each of which offers similar but not identical product and also
they servings a food varies and they control their brand and
prices.

Monopolistic competition
Because a market in which there are many firms that sell
goods and services that they distinguish from others, it gives
retailer like gasoline station some price control.

Monopolistic competition
Because schools, colleges and universities can be called as
firms. Each produces a similar product but the products are not
identical.