Lesson Plan : Models of Competition
Teacher Name: | Mrs. Alberta Emery |
Grade: | Grade 11-12 |
Subject: | Other |
Topic: | Imperfectly Competitive Markets IMPERFECTLY COMPETITIVE MARKETS |
Content: | Oligopolies: Non-price competition Interdependent Pricing price leadership/price war Collusion Cartels |
Goals: | Students will understand the following market structures: Perfect competition Monopolistic competition Oligopoly Pure monopoly |
Objectives: | Students will be able to define: Oligopoly Interdependent pricing Price leadership Price war Collusin Cartel |
Materials: | Large cards with vocabulary definitions |
Introduction: | List the following on the front baoard: can of soda, domestic car, a month of cable TV Ask students what they would be pay for hese items. Tell students we will be examining noncompetitive markets. |
Development: | Teach the definitions of the above terms Oligopoly: A market in which a few large sellers control most of the production of a good or service. Interdependent pricing: The setting of prices in a manner responsive to -or dependent on -one's competitors. Price leadership: A situation where one major seller in an industry sets a price and other sellers follow in order to remain competitive. Price war: A series of price reductions that may become so drastic that each seller involved suffers considerable losses. Collusion: An effort by producers or sellers of a particular product to secretly set production levels or price. Cartel: A group of producers or sellersof a certain good or service who unite to control prices, output, and market share. |
Practice: | Small group activity: Students will think of as many oligopolistic markets as they can. Students will write down each example that they can think of and explain how that mrket or industry meets the three criteria of an oligopolistic market Students will share their group's list with the clas. |
Accommodations: | |
Checking For Understanding: | Give a comprehension quiz. |
Closure: | Look at map on page 124 and review the comparison of different market structures. |
Evaluation: | |
Teacher Reflections: |
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