Monopoly types

BellringerBellringer1. How many players win the 1. How many players win the

game “Monopoly” if you game “Monopoly” if you play it until the end?play it until the end?

No we won’t be playing it in No we won’t be playing it in this class.this class.

2.2. How many How many suppliers sell sell lunch here at Pueblo?lunch here at Pueblo?

3.3. How would things change How would things change if TUSD allowed multiple if TUSD allowed multiple

sellers during lunch?sellers during lunch?4.4. Get out your notes:Get out your notes:

Cornell notes topic:Monopolies

4 Market Structures4 Market Structures

MonopolyMonopolyMonopolistic Monopolistic CompetitionCompetition

Perfect CompetitionPerfect CompetitionOligopolyOligopoly

MonopolyMonopoly A market for a A market for a

good/service with good/service with oneone dominate sellerdominate seller

Firm has Firm has totaltotal “pricing “pricing power”power”

Has extremely high entry Has extremely high entry costs, OR impossiblecosts, OR impossible

Types of surplusTypes of surplus Consumer surplusConsumer surplus: difference between : difference between

budget and actual pricebudget and actual price

Producer surplusProducer surplus: difference between : difference between cost and price (really just profit)cost and price (really just profit)

Budget:$50

Actual:$40

Draw less supply on Draw less supply on boardboard

What happens to CS?What happens to CS?

Price DiscriminationPrice DiscriminationThink/Pair/Share

Examples?Senior discountStudent discountEbay

Santa Barbara, CASanta Barbara, CA

ArgentinaArgentina

Types of MonopolyTypes of Monopoly GeographicGeographic Only firm in a Only firm in a

certain areacertain area FencesFences Small townsSmall towns Other example?Other example? Draw PEST Draw PEST

change on change on boardboard

Types of MonopolyTypes of Monopoly

GovernmentGovernment Granted by the Granted by the

governmentgovernment ““public utilities”public utilities” Reasoning?Reasoning?

Types of MonopolyTypes of Monopoly

TechnologicalTechnological Due to Due to

technologytechnology (Patents)(Patents) (Copyrights)(Copyrights) Software, Software,

biotechnology, biotechnology, artisticartistic

Reasoning?Reasoning? examplesexamples

Group skits on the 3 types of Group skits on the 3 types of monopolymonopoly

GeographicGeographic TechnologicalTechnological GovernmentGovernment Rules:Rules: Each group member must talkEach group member must talk 0 if you say that name of your type0 if you say that name of your type Must show the effect monopoly has on Must show the effect monopoly has on

pricesprices +5 QE if every group is able to guess +5 QE if every group is able to guess

your typeyour type

On your BROn your BRName the type of monopoly & Name the type of monopoly &

whywhy4.4. Fernanda designs a new game appFernanda designs a new game app

5.5. Popcorn at Harkins movie theaterPopcorn at Harkins movie theater

6.6. Interstate Highways like I-10 or I-19 Interstate Highways like I-10 or I-19

7.7. The only mechanic Ajo, ArizonaThe only mechanic Ajo, Arizona

8.8. School lunches at PuebloSchool lunches at Pueblo

9.9. Snacks in certain Pueblo classroomsSnacks in certain Pueblo classrooms

10.10. Secret recipe for GatoradeSecret recipe for Gatorade

11.11. US militaryUS military

12.12. Tucson Water CompanyTucson Water Company

13.13. Expensive soda at a baseball gameExpensive soda at a baseball game

Closure questionsClosure questions

4. Why do economists worry about 4. Why do economists worry about monopolies? (hint: think about prices)monopolies? (hint: think about prices)

5. Why are technological monopolies 5. Why are technological monopolies allowed to exist? (think about allowed to exist? (think about creative businesses)creative businesses)

6. Do you think government monopolies 6. Do you think government monopolies are always positive for consumers? are always positive for consumers? (consider our school lunches, or the (consider our school lunches, or the AZ MVD)AZ MVD)

Geographic

Government

Technological

Geographic

Government

Technological

Geographic

Government

Technological

Geographic

Government

Technological

Geographic

Government

Technological

Geographic

Government

Technological

Min Wage reading Min Wage reading questionsquestions

1.1. Graph paragraph #2Graph paragraph #2

2.2. How do employers react to min. wage How do employers react to min. wage increase? (pg 3-4)increase? (pg 3-4)

3.3. How does the author think employees will How does the author think employees will to react to getting the low skilled jobs? (pg to react to getting the low skilled jobs? (pg 6-7)6-7)

4.4. Would the author support reducing the Would the author support reducing the minimum wage for people aged 15-20?minimum wage for people aged 15-20?

5.5. Using your S/D graph, describe of 2 Using your S/D graph, describe of 2 benefits to the economy if the minimum benefits to the economy if the minimum wage was reduced for people aged 15-20.wage was reduced for people aged 15-20.