Economics 7-1Notebook # 25

day 3

Competition and Market Structures

Why do we differentiate instruction?Why do we differentiate instruction?

We all learn differently and We all learn differently and ourour students do too. students do too.

We want what is best for all We want what is best for all students.students.

Learning styles, skill levels, and ratesLearning styles, skill levels, and rates Learning difficultiesLearning difficulties Language proficiencyLanguage proficiency Background experiences and knowledgeBackground experiences and knowledge InterestsInterests MotivationMotivation Ability to attendAbility to attend Social and emotional developmentSocial and emotional development Various intelligencesVarious intelligences Levels of abstractionLevels of abstraction Physical needsPhysical needsAdapted from http://www.ed.gov/teachers/how/tools/initiative/summerworkshop/walker/walker.ppt#263,7,Differentiation: Differentiated Adapted from http://www.ed.gov/teachers/how/tools/initiative/summerworkshop/walker/walker.ppt#263,7,Differentiation: Differentiated

InstructionInstruction

Differentiation is a teaching concept in which the classroom teacher plans for the diverse needs of students. The teacher must consider such differences as the students’:

And what does differentiation And what does differentiation mean?mean?

We commit to delivering the curriculum to We commit to delivering the curriculum to all studentsall students

We provide challenge and rigor to all We provide challenge and rigor to all students, but still provide them with students, but still provide them with opportunities for success.opportunities for success.

We recognize that students do not all need We recognize that students do not all need to do the same tasks in the same way.to do the same tasks in the same way.

Why do we differentiate instruction?Why do we differentiate instruction?

We use grouping to help students learn.We use grouping to help students learn.We create fair evaluation processes for We create fair evaluation processes for

student learning and grades.student learning and grades.We are coaches, facilitators, and guides, We are coaches, facilitators, and guides,

over the curriculum and the learning.over the curriculum and the learning.Students should be involved in how they Students should be involved in how they

decide to learn the material that is required decide to learn the material that is required by the curriculum.by the curriculum.

Differentiate Differentiate the the

curriculum curriculum in three in three areasareas

Content- options for Content- options for how you take in the how you take in the informationinformation

Process- options for Process- options for you to make sense of you to make sense of the information & the information & begin to understand it. begin to understand it.

Product- options for Product- options for showing that you have showing that you have learned the learned the information. This information. This means assignment means assignment choices that still cover choices that still cover the same content in the same content in the curriculum. the curriculum.

Differentiating Content still Differentiating Content still includes: includes:

Use of technology/ internetUse of technology/ internetDifferent types of articlesDifferent types of articlesBrief lectures from the teacherBrief lectures from the teacherVideos/ documentariesVideos/ documentariesPersonal research & writing essaysPersonal research & writing essaysThe use of cooperative learning groupsThe use of cooperative learning groups

Differentiating Differentiating Product/Assignments Product/Assignments

Use of Bloom’s Use of Bloom’s taxonomy to decide taxonomy to decide how you would like to how you would like to learn. learn.

Differentiating Product/Assigments Differentiating Product/Assigments

Use of multiple Use of multiple intelligences theory intelligences theory

A Multiple Intelligence-Based A Multiple Intelligence-Based Product/Assignment ListProduct/Assignment List

Verbal LinguisticVerbal LinguisticWrite a book, poem, myth, or news articleWrite a book, poem, myth, or news articleDesign a checklist for…Design a checklist for…Research a topic and take notes…Research a topic and take notes…Write a travel brochure/ newsletterWrite a travel brochure/ newsletterCreate a set of newspaper headlinesCreate a set of newspaper headlinesUse a story telling to explainUse a story telling to explain

Logical MathmaticalLogical Mathmatical

Conduct a survey, graph your results, and Conduct a survey, graph your results, and draw conclusionsdraw conclusions

Construct a visual timelineConstruct a visual timelineDesign and conduct an experimentDesign and conduct an experimentCreate or play a dice game and recordCreate or play a dice game and recordCreate a word problem based on…Create a word problem based on…

Bodily KinestheticBodily Kinesthetic

Bring in hands-on material to demonstrateBring in hands-on material to demonstrate Make a videotape of…Make a videotape of… Create a museum exhibit to show…Create a museum exhibit to show… Create a play, role play, or props for…Create a play, role play, or props for… Gather an artifact box to show…Gather an artifact box to show… Create a movement or sequence of movements Create a movement or sequence of movements

to explain…to explain…

IntrapersonalIntrapersonal

Keep a diary about…Keep a diary about…Reflect on your own learning Reflect on your own learning

(SBC!!!)(SBC!!!)Write an advice columnWrite an advice columnRecord in a progress chart your Record in a progress chart your

accomplishments towards a goal…accomplishments towards a goal…Create a scrapbook for a character or Create a scrapbook for a character or

historical figure…historical figure…

SpatialSpatial

Design a greeting card or post cardDesign a greeting card or post cardCreate a photojournal about…Create a photojournal about…Create a game that teaches a concept…Create a game that teaches a concept…Find examples of art, architecture, or Find examples of art, architecture, or

sculpture to symbolize the story/reflect the sculpture to symbolize the story/reflect the time period.time period.

Use photographs to…Use photographs to…

MusicalMusical

Interpret a song from a specific time period Interpret a song from a specific time period and discuss how culture/ society and discuss how culture/ society influenced…influenced…

Play a piece of music to demonstrate…Play a piece of music to demonstrate…Gather examples of music that reflect the Gather examples of music that reflect the

mood of a book or time period…mood of a book or time period…

NaturalistNaturalist

Write a photojournal about…Write a photojournal about…Take a virtual field trip to…Take a virtual field trip to…Write and illustrate a postcard from…Write and illustrate a postcard from…Gather or plan a collection of objects Gather or plan a collection of objects

that…that…

InterpersonalInterpersonal

Evaluate your group’s performanceEvaluate your group’s performancePresent a news show/ talk showPresent a news show/ talk show Interview several people about…Interview several people about…Lead a Socratic Seminar about…Lead a Socratic Seminar about…Teach the class about…Teach the class about…

Differentiating InstructionDifferentiating Instruction

Start slow!Start slow!Don’t differentiate every lesson!Don’t differentiate every lesson!Don’t grade everything! Don’t grade everything! This type of instruction should involve a lot This type of instruction should involve a lot

of self-assessment.of self-assessment.Differentiation can be a little chaotic, but it Differentiation can be a little chaotic, but it

works!works!

Economics 7-1

ESSENTIAL QUESTION:

• Why is competition encouraged in a free market?

• Why are monopolies illegal infree market?

Competition & Market Structures

Economics 7-1

Competition & Market Structures

GPS STANDARDS:

SSEMI4-

a.) Identify the basic characteristics of monopoly, oligopoly, monopolistic competition, and pure competition

Economics 7-1Competition & Market Structures

Introduction

•When Adam Smith published An Inquiry into the Nature and Causes of the Wealth of Nations in 1776, the average factory was small, and business was competitive.

Economics 7-1Competition & Market Structures

•Laissez-faire, the philosophy that government should not interfere with commerce or trade, dominated Smith’s writing.

•“Laissez-faire” is a French term that means “allow them to do.”

Economics 7-1

Under laissez-faire, the role of government is confined to protecting private property, enforcing contracts, settling disputes, and protecting businesses against increased competition from foreign goods.

By the late 1800s, however, competition was weakening.

Competition & Market Structures

Economics 7-1

• As industries developed–industry meaning the supply side of the market or all producers collectively–the nature of competitive markets changed.

Competition & Market Structures

Economics 7-1

Market structure is the nature and degree of competition among firms operating in the same industry.

Competition & Market Structures

Economics 7-1

Perfect competition is when a large number of buyers and sellers exchange identical products under five conditions.

Economics 7-1Perfect competition’s five conditions:1. There should be a large number of buyers and

sellers.

2. The products should be identical.

3. Buyers and sellers should act independently.

4. Buyers and sellers should be well-informed.

5. Buyers and sellers should be free to enter, conduct, or get out of business.

Economics 7-1Figure 7.1 APerfect Competition: Market Price

and Profit MaximizationUnder perfect competition, supply and demand set the equilibrium price, and each firm sets a level of output that will maximize its profits at that price.

Economics 7-1

What if a town had an open farmers’ market during the spring and summer. How would it meet each condition for a perfectly competitive market?

Competition & Market Structures

Economics 7-1 To be a perfectly competitive market

the farmer’s market would have to: 1. it would draw many buyers and sellers

2. the products would be farm-grown vegetables and fruits

3. prices would be set based on the week’s harvest (supply) and buyers’ demand

4. buyers examine and select products firsthand;

5. and buyers may choose not to purchase and sellers may choose not to participate or not to offer all farm products.

Economics 7-1 • Monopolistic competition meets all

conditions of perfect competition except for identical products.

• Monopolistic competitors use product differentiation—the real or imagined differences between competing products in the same industry.

Economics 7-1 • Monopolistic competitors use

nonprice competition, the use of advertising, giveaways, or other promotional campaigns to differentiate their products from similar products in the market.

• Monopolistic competitors sell within a narrow price range but try to raise the price within that range to achieve profit maximization.

Economics 7-1 What are some examples of

how different clothing companies differentiate their products to influence you to buy them?

Economics 7-1

1.available sizes

2.quality of fabric

3.appeal to a younger market

4.What else makes you buy a clothing line or related product?

Economics 7-1 How do cell phone companies

differentiate their products to influence you to buy them?

Economics 7-1 What about cell phone

companies?

Economics 7-1 1.style of phone- color, etc.

2.phone features

3.unlimited calling plans

4.unlimited texting plans

5. how do they appeal to a

younger market

Economics 7-1 Oligopoly is a market structure in

which a few very large sellers dominate the industry.

FORD Chrysler General

motors

Economics 7-1 • Oligopolists act interdependently by

lowering prices soon after the first seller announces the cut, but typically they prefer nonprice competition because their rival cannot respond as quickly.

Economics 7-1 Example nonprice competition:• I’m a Mac

• I’m a PC

Competing television commercials

Economics 7-1 • Oligopolists act interdependently by

lowering prices soon after the first seller announces the cut, but typically they prefer nonprice competition because their rival cannot respond as quickly.

Economics 7-1 • Oligopolists may all agree

formally to set prices, called collusion, which is illegal (because it restricts trade).

Economics 7-1 Two forms of collusion include:

1.price-fixing, which is agreeing to charge a set price that is often above market price

2.dividing up the market for guaranteed sales.

Economics 7-1 Oligopolists can engage in

price wars, or a series of price cuts that can push prices lower than the cost of production for a short period of time.

Economics 7-1 COLA WARS

Economics 7-1 • Oligopolists’ final prices are

likely to be higher than under monopolistic competition and much higher than under perfect competition.

Economics 7-1 Why do you suppose oligopolists

rarely protest when a rival raises its prices?

Oligopolists know that a higher price by one of its competitors will eventually lead to its own higher profits as they raise their prices to match their competitor.

Economics 7-1 • A monopoly is a market structure

with only one seller of a particular product.

• The United States has few monopolies because Americans prefer competitive trade, and technology competes with existing monopolies.

Economics 7-1 • Natural monopoly occurs when a

single firm produces a product or provides a service because it minimizes the overall costs

• Public utilities- Georgia Power, Atlanta Gas Light (now Georgia Natural Gas), AT&T.

Economics 7-1 • The United States has few

monopolies because Americans prefer competitive trade, and technology competes with existing monopolies.

• Geographic monopoly occurs when the location cannot support two or more such businesses (small town drugstore, grocery store, hardware store).

Economics 7-1 • Technological monopoly

occurs when a producer has the exclusive right through patents or copyrights to produce or sell a particular product

Economics 7-1 • Government monopoly occurs

when the government provides products or services that private industry cannot adequately provide

• uranium processing

• nuclear weapons production

Economics 7-1 Why are monopolies unappealing

to Americans?

Americans value the benefits of the free enterprise system and economic and social goals that the system promotes.