Module E.1.2: Market Structures

Standard: EPF.E.1.2

Objective: Compare characteristics of different market structures (perfect competition, monopoly, oligopoly, monopolistic competition).

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Lesson Overview

• Define each market structure
• Identify real-world examples
• Analyze advantages and disadvantages

Teacher Notes

• Use diagrams to illustrate market structures
• Discuss current events involving monopolies/oligopolies
• Facilitate group discussions on market power

Activities

• Market structure simulation game
• Case study: Famous monopolies
• Chart: Compare features of each structure

Assessment

• Quiz on definitions and examples
• Group presentation on assigned structure

Questions

1. Multiple Choice: Which market structure has the most competition?

   • a) Monopoly
   • b) Oligopoly
   • c) Perfect competition
   • d) Monopolistic competition

2. Short Answer: Give an example of a real-world monopoly.

3. Multiple Choice: In which market structure do firms have the most control over price?

   • a) Perfect competition
   • b) Monopoly
   • c) Oligopoly
   • d) Monopolistic competition

4. Short Answer: List one advantage and one disadvantage of an oligopoly.

5. Multiple Choice: Which structure is most likely to use advertising to differentiate products?

   • a) Perfect competition
   • b) Monopoly
   • c) Monopolistic competition
   • d) Oligopoly

6. Short Answer: Explain why barriers to entry are important in a monopoly.

7. Multiple Choice: Which of the following is NOT a characteristic of perfect competition?

   • a) Many buyers and sellers
   • b) Identical products
   • c) Difficult entry
   • d) Easy exit

8. Short Answer: How can government regulation affect market structures?

Resources

• NC DPI EPF Standards
• Market structure infographics