economics section: competitive marketsfurther reading. chp 22 keywords – firms, competition,...
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Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
• Class : y10
• Lesson Topic: Competitive Markets
• Scheme of Work: Business Economics Part 2 COMPETITION
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
Lesson Objectives P&DPlanning and
Data
ALL (KNOWLEDGE) Define and describe the terms for a competitive market
MOST (ANALYSIS) Examine and Analyse the concepts of a competitive market
SOME (EVALUATION )
Evaluate the pros and cons & Justify your views if competition is favourable
Higher thinking
Skills
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
Planning ToolsP&DPlanning and
Data
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
Define and describe the terms for a competitive market[Grade E-D]
Examine and Analyse the concepts of a competitive market
[Grade C-B]
Evaluate the pros and cons & Justify your views if competition is favourable
[Grade A-A*]
Personalise your learning. . .
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
Keyword Definition
Firm
Barriers to Entry
Competition
Monopoly
Oligopoly
Product Differentiation
Innovation
CONNECTIVES
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
CONNECTIVES for AnalysisCONNECTIVES for ApplicationCONNECTIVES for Evaluation
COMPARINGEqually…As with…Like…In the same way…Similarly…Even so…Likewise…CAUSE & EFFECT
Consequently… Due to…As a result… Therefore..Because of… Because…
CONCLUDINGFirstly… After…Secondly… Before…Overall… I believe…Finally… I think …In conclusion… it depends…To conclude… short term…Meanwhile… Long term…
CONTRASTINGAlthough… Except…Moreover… If…However… Yet…Apart from… Unless…Despite… As long as…
EMPHASISINGMost importantly…Significantly…Notably…Especially…Above all…In particular…Indeed…
QUALIFYINGDespite… Yet…As long as… Unless…Apart from… If…Moreover… Except…However… Although…
ADDINGIn addition… And…Too… Also…Additionally… As well as…Furthermore…
ILLUSTRATINGFor instance… Such as…In the case of… So…For example…As revealed by…As illustrated by…
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
Climb the LadderA-A*
1. To what extent 2. Do you think3. Evaluate whether (10m) 10+ connectives & key words
C-B
1. Explain 2. Compare3. Analyse (5-9m) 5+ connectives & key words
E-D
1. Define 2. Describe3. Identify (2-4m) 2 + connectives & key words
ATDApply to
demonstrate
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
Recap Economies of Scale
COMPLETE TABLE…
Internal External
Economy of Scale
Lowering of ______ _______ as firm _______. 5 types are:
Diseconomy of Scale
Not Aplicable
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
You have choice of setting up a fruit stall in market or oil company! Which is easier?
Which is less costly to setup?
Which has more government regulation?
Which has potential economies of scale?
Which is more profitable?
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
Opening your own oil/petrol company
There are massive barriers to entry in opening an oil company:• Massive costs of drilling for oil.• Capital investment required.• Purchase of land to drill• Government rules to follow• Advertising and distribution world wideBARRIERS TO ENTRY ARE DIFFICULTIES WHICH STOP NEW FIRMS ENTERING A MARKET..
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
Opening your own fruit stall• This on the other hand is much easier to do.
• Capital investment only requires some working capital, maybe a stall and a location in a market.
• Government rules are less of a problem and costs are much reduced.
• BARRIERS TO ENTRY ARE LOW! THEREOFRE NEW FIRMS ENTER THE MARKET EASILY.
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
BARRIERS TO ENTRY
• Low barriers to entry = More competition.
• There could be thousands of fruit stalls in a country but only a handful of oil companies.
• High barriers to entry = Less competition!
• Is competition good?
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
A Competitive Market • A competitive market has low barriers to entry • New firms can enter the market easily• High degree of firms in market (competitive)• Products are similar therefore little product differentiation. • Firms have little control over price (So many)• Prices are driven low for everyone.
Think of a farmer selling wheat….
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
How does competition affect everyone?Consumer Firms Society
Prices Satisfied with low prices.
Low prices to attract customers.
Effective price mechanism allocation.
Costs / Profit
Costs / Profit low to keep prices low.
Efficiency Efficient allocation of resources for everyone.
Innovation Low profits means less capital for firms to reinvest in new products.
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
30 Secs – How many firms can you remember?
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
Apply learning • Think of the industries below and assess with your partner the
degree of competition. Is it competitive or not and why not?
• Sports brands• Supermarkets • Cars• Fast food• Clothes
• Which firm faces MOST / LEAST competition ?• Which firm has HIGH / LOW PRICES ?
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
Questions
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
Perfect Competition
Pure Monopoly
Monopolistic Competition Oligopoly Duopoly Monopoly
The further right on the scale, the greater the degree of monopoly power exercised by the firm.
Lots of CompetitionCompetitive Prices
No CompetitionHigh Prices
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
Lesson Objectives P&DPlanning and
Data
ALL (KNOWLEDGE) Define and describe the terms for a competitive market
MOST (ANALYSIS) Examine and Analyse the concepts of a competitive market
SOME (EVALUATION )
Evaluate the pros and cons & Justify your views if competition is favourable
Higher thinking
Skills
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
A-A*
1. To what extent 2. Do you think3. Evaluate whether (10-14m)
C-B
1. Explain 2. Compare3. Analyse (5-9m)
E-D
1. Define 2. Describe3. Identify (2-4m)
ATDApply to
demonstrate Apply to Demonstrate Review the Learning
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
Pass the ParcelAdd as much information you can remember from today’s lesson
When the horn blows – pass your sheet to the next table!
RReview the
Learning
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
Neighbours
2 things your neighbour has learnt today
1 question your neighbour wants
to ask
RReview the
Learning
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
Summarise your learning today into a single tweet
140 characters
Keep all of the information
Tweet Tweet
STOP
RReview the
Learning
Economics Section: Competitive Markets Further Reading. Chp 22
Keywords – Firms, competition , barriers to entry , innovation , product differentiation, monopoly.
1 questionyou need to ask
2 new things you learnt
3 pieces of information
RReview the
Learning
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