APPLIED

ECONOMICS
LESSON 6:
MARKET STRUCTURES

Prepared by: Ms. Agatha Dela Paz

 OPENING PRAYER
Lord, God of all wisdom
We pray for the La Consolacion University
Philippines that she may be faithful to the
purposes of our foundresses, continue to
promote the search for truth and knowledge and
be an inspiration for others to follow.
 OPENING PRAYER

May we be a community of scholars sharing

this ambition, caring for one another and loyal
to the truth revealed to us as your disciples.

AMEN.
CLASSROOM
ATTENDANCE
 CLASSROOM RULES
BE ON TIME PROPER SEAT

I encourage everyone to be on Remain in your proper seats

time. Please be here before the and refrain from standing while
start of the class. the class is on going.
 CLASSROOM RULES
NO FOODS/DRINKS NO GADGETS

Use of mobile phones and other

No foods and drinks are gadgets during discussion is
allowed during class hours. prohibited.
MERALCO
PETRON
JOLLIBEE
MAYNILAD
PENSHOPPE
APPLIED
ECONOMICS
LESSON 6:
MARKET STRUCTURES

Prepared by: Ms. Agatha Dela Paz

 OBJECTIVES
analyze and compare the impact of different
market structures on resource allocation
efficiency
 OBJECTIVES
appreciate the role of market structures in
shaping economic outcomes, fostering curiosity
about how markets function and impact their
everyday lives through problem solving scenarios
 OBJECTIVES
engage in group discussion and presentation,
actively participating in analyzing market
structure scenarios and communicating their
findings effectively to peers
PERFECT COMPETITION

LOCAL
GAMING
GROCERY
CONSOLES AIRLINES
STORES
PERFECT COMPETITION
 PERFECT COMPETITION
Perfect competition is a theoretical market
structure characterized by a large number of
buyers and sellers, homogeneous products,
perfect information, ease of entry and exit,
and no barriers to competition.
 PERFECT COMPETITION
Government or local authorities have a little
significant or no control in this kind of market

In a perfectly competitive system, cheap and

efficient transportation is important.

NOT HARD TO NOT HARD TO NOT HARD TO

TRANSPORT PRODUCE SELL
STREETFOOD WET AND DRY
MARKET
PERFECT COMPETITION
Built of so many small firms that have no
influence over the product’s prices.

Made up of firms that sell homogenous

product or likely same products.

Good for short term profit.

 MONOPOLY

MOBILE MICROSOFT
STOCK PHONE WINDOWS
MARKET MANUFACTU-
RERS
OPERATING
SYSTEM
MONOPOLY
 MONOPOLY
In a monopolistic market structure, there is
only one seller or producer in the market,
giving them significant control over the price
and supply of the product or service.
 MONOPOLY
Limited Competition Regulatory Oversight

Market Power Inefficiency

Potential for Rent -

Barriers to Entry
seeking Behavior
WATER SUPPLY ELECTRICITY
DISTRIBUTOR
 OLIGOPOLY

FISH
STORE IN SOFT DRINK CLOTHING
THE INDUSTRY INDUSTRY
MARKET
OLIGOPOLY
 OLIGOPOLY
An oligopoly is a market structure
characterized by a small number of large
firms dominating the majority of market share
within a particular industry. These firms
typically have significant market power,
allowing them to influence prices and control
the market to some extent.
 OLIGOPOLY
THINGS TO REMEMBER UNDER
OLIGOPOLISTIC MARKET STRUCTURE
Few Dominant Firms Non-Price Competition

Interdependence Barriers to Entry

 HOW MIGHT THE PRESENCE OF
BARRIERS TO ENTRY AFFECT
COMPETITION WITHIN A MARKET, AND
WHAT IMPLICATIONS DOES THIS HAVE
FOR CONSUMER CHOICE AND
WELFARE?
TELECOMMUNICATION GASOLINE
PROVIDER
MONOPOLISTIC COMPETITION

SOFT DRINK VEGGIE CLOTHING

INDUSTRY SELLER INDUSTRY
MONOPOLISTIC COMPETITION
MONOPOLISTIC COMPETITION
Monopolistic competition is a market
structure characterized by a large number of
firms competing with each other. These firms
produce similar but slightly differentiated
products, giving them some degree of market
power.
MONOPOLISTIC COMPETITION
Product Non-Price
Differentiation Competition

Downward-Sloping
Many Sellers
Demand Curve

Freedom of
Consumer Choice
Entry and Exit
RETAIL CLOTHING BEVERAGE
INDUSTRY INDUSTRY
WHY IS IT IMPORTANT FOR INDIVIDUALS
TO UNDERSTAND THE DIFFERENT
MARKET STRUCTURES AND THEIR
IMPLICATIONS FOR RESOURCE
ALLOCATION AND ECONOMIC
EFFICIENCY?
 WHAT ARE THE ETHICAL
CONSIDERATIONS ASSOCIATED WITH
MONOPOLISTIC PRACTICES, AND HOW
DO THEY INFLUENCE CONSUMER
WELFARE AND SOCIETAL WELL-BEING?
MARKET STRUCTURE CASE STUDIES
INSTRUCTIONS
The class will be divided into small
groups of 7 students each

Each group will be provided with a case

study scenario representing one of the four
market structures: Perfect Competition,
Monopoly, Oligopoly, or Monopolistic
Competition.
INSTRUCTIONS
analyze your assigned scenario,
considering factors such as market
power, pricing strategies, barriers
to entry, and consumer welfare.

You will be given 10 minutes for

the group discussion and analysis.
 REMEMBER:
MARKET POWER
It refers to the ability of a company to influence prices
or control the market due to its size or unique product.

PRICING STRATEGIES
These are plans that businesses use to decide how
much to charge for their products or services.
 REMEMBER:
BARRIERS TO ENTRY
These are obstacles that make it difficult for new
businesses to start operating in a particular industry.

CONSUMER WELFARE
It refers to how well off or satisfied consumers are when
buying goods and services.
 HOW DO DIFFERENT TYPES OF
MARKETS AFFECT WHAT WE BUY, HOW
BUSINESSES COMPETE, AND HOW WE
ALL BENEFIT FROM FAIR COMPETITION?
 OBJECTIVES
analyze and compare the impact of different
market structures on resource allocation
efficiency
 OBJECTIVES
appreciate the role of market structures in
shaping economic outcomes, fostering curiosity
about how markets function and impact their
everyday lives through problem solving scenarios
 OBJECTIVES
engage in group discussion and presentation,
actively participating in analyzing market
structure scenarios and communicating their
findings effectively to peers
 CLOSING PRAYER
Dear Heavenly Father,

As we come to the close of another enlightening

session, we give thanks for the opportunity to
gather together and learn. We are grateful for
the knowledge and wisdom imparted to us, and
for the guidance of our teachers and mentors.
 CLOSING PRAYER

May the lessons we have learned today inspire

us to grow in understanding and compassion.
Guide us as we apply these teachings in our
lives, and help us to be a positive influence on
those around us.
 CLOSING PRAYER
As we depart from this classroom, we ask for
your protection and blessing upon each one of
us. Grant us safe travels to our homes and places
of rest.

In your name, we pray. Amen.