name: period: week: 28 – 29 dates: 3/2 -3/16 unit: markets &...

Name: _________________________________________________________ Period: __________

Week: 28 – 29 Dates: 3/2 -3/16 Unit: Markets & Business Organizations Chapters: 7–8

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Monday Tuesday Wednesday Thursday Friday

2 O

*Chapter 7

3 E 4 O

*Chapter 7

5 E 6 O

*Be An Entrepreneur

9 E

*Ch 8*Cooperative Business Organization

10 O 11 E

*Assisting Ag Producers

12 O 13 E

*Chapter 8

16 O

*Unit Test*Packet Due

17 E 18 O 19 E 20 O

Assignment Your Score Total Points Possible

Chapter 7 Notes 20

Chapter 7 HW:78 1-8, 10, 13 50

Chapter 7 Vocab Practice 32

Be An Entrepreneur 30

Chapter 8 Notes 20

Chapter 8 HW:page 206 1- 8, 10-15 80

Cooperative Business Notes 20

Assisting Ag Producers Notes 15

TOTAL 267

Good to Know Vocab!

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Word Definition

Liability

Corporation

Conglomerate

Royalties

Non Profit

Cooperative

Strike

Arbitration

Bargaining

Glass Ceiling

Collective

Labor Union

Contingent

Chapter 7 Perfect Competition

The Four Conditions for Perfect Competition Perfect competition is a market ____________ in which a large number of firms all produce the same product. 1. Many Buyers and Sellers

2. Identical Products

3. Informed Buyers and Sellers

4. Free Market Entry and Exit

Barriers to Entry Start-up Costs

Technology

Price and Output

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Section 1 Assessment 1. Which of the following is NOT a condition for perfect competition?

(a) many buyers and sellers participate (b) identical products are offered (c) market barriers are in place (d) buyers and sellers are well-informed about goods and services

2. How does a perfect market influence output? (a) Each firm adjusts its output so that it just covers all of its costs. (b) Each firm makes its output as large as possible even though some goods are not sold. (c) Different firms make different amounts of goods, but some make a profit and others do not. (d) Different firms each strive to make more goods to capture more of the market.

Defining Monopoly *A monopoly is a market dominated by a ______________ seller. *Monopolies form … *Monopolies can take advantage …

Forming a Monopoly 1. Economies of Scale

2. Natural Monopolies

3. Technology and Change

Government Monopolies Technological Monopolies

Franchises and Licenses

Industrial Organizations

Price Discrimination Price discrimination is the division of customers into groups based on how much they will pay for a good. *Although price discrimination is a feature of ______________, it can be practiced by any company

with market power. Market power is the ability to _______________ prices and total market output. *Targeted discounts, like student discounts and manufacturers’ rebate offers, are one form of price

_________________. *Price discrimination requires some market _________, distinct customer groups, and difficult resale.

Output Decisions *Even a monopolist faces a limited choice –

*Monopolists will try to maximize profits..

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*A monopolist sets output at a point where marginal revenue is equal to marginal cost.

Section 2 Assessment 1. A monopoly is

(a) a market dominated by a single seller. (b) a license that gives the inventor of a new product the exclusive right to sell it for a certain amount of time. (c) an industry that runs best when one firm produces all the output. (d) an industry where the government provides all the output.

2. Price discrimination is (a) a factor that causes a producer’s average cost per unit to fall as output rises. (b) the right to sell a good or service within an exclusive market. (c) division of customers into groups based on how much they will pay for a good. (d) the ability of a company to change prices and output like a monopolist.

Four Conditions of Monopolistic Competition In monopolistic competition, many companies compete in an _________ market to sell products which are similar, but not identical. 1. Many Firms

2. Few Artificial Barriers to Entry

3. Slight Control over Price

4. Differentiated Products

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Nonprice Competition Nonprice competition is a way to attract customers through style, service, or location, but not a ________________ price. 1. Characteristics of Goods

2. Location of Sale

3. Service Level

4. Advertising Image

Prices, Profits, and Output Prices

Prices will be higher than they would be in perfect competition, because firms have a small amount of _____________ to raise prices.

Profits While monopolistically competitive firms can earn profits in the short run, they have to work hard

to keep their product distinct enough to stay ahead of their rivals. Costs and Variety

Monopolistically competitive firms cannot produce at the lowest average price due to the number of firms in the market. They do, however, offer a ___________ array of goods and services to consumers.

Oligopoly Oligopoly describes a market dominated by a _______ large, _____________ firms. Collusion Collusion is an agreement…

Cartels Comparison of Market Structures

Markets can be grouped into four basic structures: perfect competition, monopolistic competition, oligopoly, and monopoly

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Section 3 Assessment 1. The differences between perfect competition and monopolistic competition arise because

(a) in perfect competition the prices are set by the government. (b) in perfect competition the buyer is free to buy from any seller he or she chooses. (c) in monopolistic competition there are fewer sellers and more buyers. (d) in monopolistic competition competitive firms sell goods that are similar enough to be substituted for one another.

2. An oligopoly is (a) an agreement among firms to charge one price for the same good. (b) a formal organization of producers that agree to coordinate price and output. (c) a way to attract customers without lowering price. (d) a market structure in which a few large firms dominate a market.

Market Power *Market power is the ability of a company to ____________ prices and output. *Markets dominated by a _________ large firms tend to have higher prices and lower output than

markets with ______________ sellers. *To control prices and output like a monopoly, firms sometimes use predatory pricing. Predatory

pricing sets the market price ___________ cost levels for the short term to drive out competitors.

Government and Competition *Government policies keep firms from ________________ the prices and supply of important goods. Antitrust laws are laws that encourage competition in the marketplace. 1. Regulating Business Practices

2. Breaking Up Monopolies

3. Blocking Mergers

4. Preserving Incentives

Deregulation *Deregulation is the removal of some ________________ controls over a market. *Deregulation is used to promote _______________. *Many new competitors enter a market that has been deregulated. This is followed by an

economically healthy weeding out of some firms from that market, which can be hard on workers in the ____________ term.

Section 4 Assessment 1. Antitrust laws allow the U.S. government to do all of the following EXCEPT

(a) regulate business practices (b) stop firms from forming monopolies (c) prevent firms from selling new experimental products (d) break up existing monopolies

2. The purpose of both deregulation and antitrust laws is to (a) promote competition (b) promote government control (c) promote inefficient commerce (d) prevent monopolies

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44 Chapter 7 Vocabulary Practice

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7

Vocabulary Practice

Across1. simplest market structure6. market structure dominated by a few large prof-

itable firms8. when government no longer decides each com-

pany’s market role and pricing9. grants firms control over scarce resources

10. can cause difficulties in getting into the market11. firm’s right to sell its goods within an exclusive

market12. a product that is the same regardless of who makes

or sells it13. joining of one firm with another to form a single firm14. exclusive rights to sell a new good or service for a

specific period of time

15. expenses of a new business before product reachesthe customer

16. market structure that characterizes an industry runmost efficiently by one large firm

Down2. oligopoly members’ agreement on price and output3. formal organization of producers that sets price and

output4. single supplier in a given market5. competition based on differences other than pricing

among products7. charging special groups different prices

Use the following clues to complete the crossword puzzle.

NAME CLASS DATE

-

1 2 3 4

6

8

9

10

12

11

13

16

14

15

75

Be an Entrepreneur! DIRECTIONS: Read pages 208-209 carefully in your groups and be prepared to go through the

simulation, records your company’s decisions and present to the class.

Preparing the Simulation: Group Members: 1. 2. 3. 4. 5

Name of Company:

Design a Logo for your Company:

Conducting the Simulation: Step 1

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Step 2 How many and what kind of caps do you want to buy? (See blue chart on page 209)

Step 3 Determine the price you want to set for each cap and calculate the profit per cap

Step 4 Determine how many caps you need to sell in order to make a profit (after paying your

monthly expenses)?

TOTAL Monthly Sales Profit - Total Monthly Expenses = ________________________

How many total caps do you have to sell to make a profit: ______________________

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Step 4 Assume that you sell equal numbers of each type of cap. How many caps do you have to sell

each month to break even (after paying your monthly expenses)? TOTAL Monthly Sales Profit - Total Monthly Expenses = ________________________

How many total caps do you have to sell to break even: ________________________

Step 4 How many caps do you have to sell each month to make a profit large enough to pay salaries

to you and your business partners (after paying your monthly expenses)?

TOTAL Monthly Sales Profit - Total Monthly Expenses = ________________________

How many total caps do you have to pay salaries to you and your business partners: ______

How much salary does each group member get per month: 1. 2. 3. 4. 5.

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Be an Entrepreneur! Simulation Analysis

Answer questions 1-4 on page 209 Below

1.

2.

3.

4.

5. What was the most interesting part about this simulation? What was the hardest part?

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Chapter 8Cue Column

(titles, vocab, big ideas, test questions)

Chapter 8

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Summary(briefly describe the main concepts, major points)

Cue Column(titles, vocab, big ideas,

test questions)

Chapter 8

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Cooperative Business OrganizationsCue Column


Cooperatives

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Cue Column(titles, vocab, big ideas,

test questions)

Cooperatives

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Organizations Assisting Agriculture ProducersCue Column


Organizations Assisting Ag Producers


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Internet Search Agricultural OrganizationsDuring this activity use a search engine to search for agricultural organizations that

benefit agricultural producers. During the search identify three organizations, copy the corporate logo and then paste it into a document labeled "Organizations Benefiting Agricultural Producers". Under each logo will list the following information:

1. How is the organization funded?

2. What is the primary commodity represented by the organization?

3. What is the primary service provided by the organization?

Be prepared to share one of your organizations.

~Print document and turn in to Mrs. Bishop~

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name: period: week: 28 – 29 dates: 3/2 -3/16 unit: markets &...

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