Unit Three: Lesson Three-Monopolies Kirby World History
CHS
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North Clackamas School District Social Studies Priority
Standards: HK 2. Analyze the complexity and investigate causes and
effects of significant events in World History.
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I Can.Describe in writing the types of monopolies that can
exist in a given economy
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USE THE CORNELL NOTE TEMPLATE FOR OF YOUR NOTES TODAY! Relax
and enjoy the ride In History Class! Focus Up and
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Market Structures II.
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Market Structures [How many sellers in each industry]
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Last time we met, we looked at the influence of..
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Brainstorm in you group 5 of the Advertising Appeals we learned
about last time.
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Testimonials A television star or someone who appears to be an
authority tells you that a product is the best. Bandwagon Appeal
Everyone is doing it. It is the thing to do. Scare Tactics You or
your family will be safer or healthier with this product. Appeal to
Individual Feelings You will feel like a million bucks if you use
this. Sex Appeal You will get more dates if you use this product.
Or, the ad seems to be selling sex appeal. The Folksy Appeal Just
like mom used to make. The Numbers Game 3 out of 4 doctors surveyed
recommend this item. What Will Others Think? Makes you worry about
your appearance. Ring around the collar. Snob Appeal $$$ Using
status to sell. Available only at fine department stores. Types of
Advertising Appeals
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great icon of the entertainment community Pillsbury DoughboyA
great icon of the entertainment community has died today at age 71,
the Pillsbury Doughboy. died yesterday of a yeast infectionHe died
yesterday of a yeast infection and complications from repeated
pokes in the belly. buried in a lightly greased coffin Mrs.
ButterworthsHungry JackCalifornia Raisins Betty CrockerHostess
TwinkiesCaptain CrunchDoughboy was buried in a lightly greased
coffin. Dozens of celebrities turned out to pay their respects,
including Mrs. Butterworths, Hungry Jack, the California Raisins,
Betty Crocker, the Hostess Twinkies, & Captain Crunch.
gravesite was piled high with floursAunt JemimaThe gravesite was
piled high with flours. Aunt Jemima delivered the eulogy and
lovingly described Doughboy as a man who never knew how much he was
kneaded. later life was filled with turnoversnot considered a very
smart cookie half-baked schemes crusty old manDoughboy rose quickly
in show business, but his later life was filled with turnovers. He
was not considered a very smart cookie, wasting much of his dough
on half-baked schemes. Despite being a little flaky at times he
still, as a crusty old man, was considered a roll model for
millions. Play Dough John DoughJane Dough Pop TartDoughboy is
survived by his wife, Play Dough; two children, John Dough and Jane
Dough; plus they had one in the oven. He is also survived by his
elderly dad, Pop Tart. The funeral was held at 3:50 for about 20
minutes.
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Choosy mothers choose _______.Choosy mothers choose _______.
JiffJiff It is the only pain reliever that you need....It is the
only pain reliever that you need.... BayerBayer How do you spell
relief?How do you spell relief? RolaidsRolaids Come fly the
friendly skies.Come fly the friendly skies. United AirlinesUnited
Airlines Be one of the few, the proud, the...Be one of the few, the
proud, the... U.S. MarinesU.S. Marines Just for the taste of
it.Just for the taste of it. Diet CokeDiet Coke
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Many
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1. Coke Classic 2. Pepsi Cola 3. Diet Coke 4. Mountain Dew 5.
Diet Pepsi Coke products have 43 % of the market and Pepsi products
have 32 %. Pepsis first commercial in 1939 became so popular, it
became a hit record and was played in jukeboxes. A 12-ounce bottle
sold for a nickel. Here it is. 6. Sprite 7. Dr. Pepper 8. Caffeine
Free Diet Coke 9. Diet Dr Pepper 10. Sierra Mist
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Oligopoly Examples Shox Shox is Nikes latest hot seller. I t is
modeled on a 10,000 year old sandal discovered in an Oregon cave.
Market Share of CellPhone Sales Samsung 25% Apple 7.5% L.G.Tel. 21%
Motorola 16% Big 3 Subscribers[mil.] AT&T Wireless
VerizonWireless SprintNextel 51.6 M 47.4 M 40.4 M
Adidas 1 at $250, uses an in-sole computer to adjust its heel
cushioning to changes in the running surface. The heel contains a
wafer-thin sensor and magnet that monitors the amount of shock
applied to the foot and adjusts the footbed 1,000 times per second.
Adidas executives hope this shoe will be their iPod. [one of those
gotta-have items] This shoe is called as a smart shoe. At $250, it
should be a genius. However, it is 1/3 heavier than other shoes,
has no reflective trim, & come in only one width. Be smart. Buy
a dumber shoe. Youll save more than $150.
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Monopolistic Competition Monopolistic Competition [element of
monopoly [differentiation uniqueness] so called monopolistic
competition] This is the most common market structure over 99% of
all firms. Examples of Monopolistic Competition Blue JeansGrocery
StoresCandy Bars Dry CleanersRock ConcertsPizza Shoe StoresCassette
playersChicken ToothpasteBook StoresSoaps and detergents
RestaurantsVacuum CleanersFurniture Stores BarbershopsBeauty
ParlorsEcon Textbook Cos Econ,Econ Econ
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A monopoly is a market dominated by a single seller.
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Monopoly A monopoly is a market dominated by a single seller.
In general, monopolies are illegal. Monopolies lead to higher
prices, inferior quality of products, and reduced supply.
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Monopolies can lead to higher prices. Monopolies do not benefit
consumers.
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Monopoly the power of one Monopoly [mono(1) poly (seller)] C
ontrol over price: Total Product: unique Ex: Comcast Cable TV T
echnological M onopoly Patent Ex: Rubiks Cube Government Monopoly
Owned & operated by G Ex: U.S. Mail State Highways Natural
Monopoly Competition would be chaotic. It is natural to give it to
one co. Ex: Utilities Cable TV Geographic Monopoly Only seller in a
specific area Example: Remote Store DART Price Makers Greyhound
Forney High Basic Cable Rate Cable TV WasteManagement TXU U.S.Mail
RubiksRubiksCubeCubeRubiksRubiksCubeCube DART
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Exs are utility companies and cable TV Market where average
costs are lowest when all output is produced by a single firm Where
competition would be chaotic, therefore, it is natural to give the
business to one firm They are privately owned, but regulated by the
government
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Dart Pilot Point High [Local G] State G Federal G
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The G o vernment has control over: U.S. Mail, State highways,
and Public schools BryanAdams Another mugging at Bryan Adams
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Examples of Geographic Monopoly Last Chance Gas Station A
general store in the middle of nowhere Last Chance Gas
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Oligopoly 1._______________________ 2._______________________
3._______________________ 4._______________________
5._______________________ Perfect Competition
1._______________________ 2._______________________
3._______________________ 4._______________________
5._______________________ Pure Monopoly 1._______________________
2._______________________ 3._______________________
4._______________________ 5._______________________ M onopolistic C
ompetition 1._______________________ 2._______________________
3._______________________ 4._______________________
5._______________________ Market Structure Word Scramble [From the
word scramble below, pick out the 5 correct answers for each market
structure] Directions: Directions: Fill in the chart to the left
Fill in the chart to the left with the red bold face words with the
red bold face words on the screen. (20 pts.) on the screen. (20
pts.) Name : _________________ Period: _________
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Economics Economics (college) Textbook Companies (over 50 of
these and they are differentiated Blue Jean Blue Jean Companies
(dozens and differentiated) Black eyed peas [that you eat] [that
you eat] One seller Easiest to enter Very many Very many (100s)
sellers Price takers Manysellers Many [25-75] sellers Price Maker
Beauty Shop few control 70% A few control 70% of the market Nat
Geog Natural, Geographic, Tech & Gov. Tech nological, &
Gov. Nike, Reebok, New Balance Adidas Balance, and Adidas
Homogeneous prod uct [Identical] Identicalor Identical (pure) or
differentiated differentiated products Comcast Cable TV Price
Leadership is used Polaroid Instamatic McDonalds, Wendys, Burger
King and Burger King Product differ entiation gives an element of
monopoly Oligopoly 1._______________________
2._______________________ 3._______________________
4._______________________ 5._______________________ Perfect
Competition 1._______________________ 2._______________________
3._______________________ 4._______________________
5._______________________ Pure Monopoly 1._______________________
2._______________________ 3._______________________
4._______________________ 5._______________________ M onopolistic C
ompetition 1._______________________ 2._______________________
3._______________________ 4._______________________
5._______________________ Market Structure Word Scramble [From the
word scramble below, pick out the 5 correct answers for each market
structure] * bold face type. * Write the bold face type. Name 1.
________________ Name 2.________________
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Oligopoly 1. Few control 70% 2. N ike, Reebok, N.Bal., &
Adidas 3. Identical or differentiated 4. Price Leadership 5. M c D
s, W endys, & Burger King. Perfect Competition 1. Easiest to
enter 2. Homogeneous product 3. Very many sellers 4. Price Takers
5. Black eyed peas Pure Monopoly 1. Nat, Geog, Tech, & Gov. 2.
Polaroid Instamatic 3. One seller 4. Comcast Cable TV 5. Price
Maker Monopolistic Competition 1. Product differentiation 2. Many
sellers 3. Econ Textbook Cos 4. Blue jean companies 5. Beauty Shop
Market Structure Word Scramble [From the word scramble below, pick
out the 5 correct answers for each market structure] Name 1.
________________ Name 2.________________ few control 70% A few
control 70% of the market * bold face type. * Write the bold face
type. Nat Geog Natural, Geographic, Tech & Gov. Tech nological,
& Gov. Nike, Reebok, New Balance Adidas Balance, and Adidas
Homogeneous prod uct [Identical] Identicalor Identical (pure) or
differentiated differentiated products Price Leadership is used
Polaroid Instamatic McDonalds, Wendys, Burger King and Burger King
Product differ entiation gives an element of monopoly Very many
Very many (100s) sellers Price takers Manysellers Many [25-75]
sellers One seller Easiest to enter Comcast Cable TV Economics
Economics (college) Textbook Companies (over 50 of these and they
are differentiated Black eyed peas [that you eat] [that you eat]
Blue Jean Blue Jean Companies (dozens and differentiated) Price
Maker Beauty Shop
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Work Time WHEN YOU ARE FINISHED with the Market Structure Word
Scramble .Work On: Market Structure Worksheet. We will have a
SUMMATIVE QUIZ NEXT WEEK OVER MARKET STRUCTURES (50 questions-Open
Notes>