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Reminder: Take practice test.

What will we learn today?What will we learn today?12.2.1 The role of government in a market economy12.3.2 Identify the factors that may cause the costs of government actions to outweigh the benefits

Unit: Market StructuresUnit: Market StructuresDay 5Day 5

What is your greatest accomplishment?

Behavior/Expectation PolicyNo more food, drink, or cell phone in

November.We’ll talk about it in December is behavior is

not a problem.

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Assignment 15: 7.4 Regulation and Deregulation

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I. Market PowerSometimes firms

practice predatory pricing, or selling a product below cost to drive competitors out of the market.

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II. Government and CompetitionAntitrust laws: laws that

encourage competitionTrust: like a cartel; an illegal

grouping of companies that discourages competition

The US Gov. tries to make sure businesses act appropriately. The Federal Trade Commission makes sure that firms do not force out competition.

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In 1890, the Sherman Antitrust Act gave the federal government the power to break up monopolies.

In 1982, US Gov. broke up ATT into 7 phone companies; prices did get lower.

Merger: the combination of two or more companies into a single firm

Sometimes the gov. tries to block mergers if they think it will not benefit the people. Generally, mergers mean less competition, and less comp. means higher prices.

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III. DeregulationDeregulation: the removal of some

government controls over a marketSometimes deregulation works great. Other

times, it fails terribly. Banks were deregulated 10 years ago. Profits

skyrocketed. But today, we are seeing the backlash of no regulation.

California deregulated their electricity about 10 years ago. Remember when we had blackouts all the time? Deregulation was a total failure in that instance.

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ReviewWhat is the purpose of antitrust laws?Why does the government often not approve

mergers?Why does predatory pricing hurt

competition?How can deregulation help an industry? How

can it hurt an industry?

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Assignment 16:Chapter 6 + 7 Crossword

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The Power of AdsYou will get into groups of 2-4 (pick people you

are comfortable working with, possibly after school)

In groups, you will choose a product to sell. You will use non price competition to encourage people to buy your product.

For this product you must create:1. A slogan- short catchy saying 2. A advertisement- hand drawn poster with

slogan and picture that includes advertising technique, message and target audience.

3. A commercial- short skit that includes advertising technique, message and target audience.

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- All group members must participate in commercial.- You must use props and scripts.- Commercial will be performed in front of class. (You can record on your own, but must be in a format that can be shown to class.)

This project is worth 50 points,so be sure to do a good job.

HomeworkYou MUST take practice tests.This is not for extra credit. This is required.This assignment is for ten points.If you don’t know how to do it, go to the

website and carefully read the directions.You don’t need to answer the short

answer/essay questions.

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