October 18,

MRS. STOUDT
2010

Market Structures in Real Life

Preview
Specifics: Economics, 12th grade, 3 class periods (50 minutes each)

Overview:

Consumers complain a lot about the prices of products in a lot of different

industries as well as the quality and type of products offered in these industries. For
example prices of cell phones, sub sandwiches, cars, and of course gasoline. Of course
most consumers don’t think about the industry as a whole concerning these products or
the degree of competition within each industry. With this lesson students will first use
their book to fill out a chart comparing the 4 major types of market structures (or
degrees of competition): perfect competition, monopolistic competition, oligopoly, and
monopoly. Then students will be divided into small groups of 3-4 and each group will
take a specific industry to investigate the characteristics of that industry including the
number of firms in the industry, the ease of entry & exit of new firms, and the real or
imagined differences between the products. Groups will then create a Prezi to share
with the class their findings and decision on which market structure their industry fits
into. Finally the class will watch the “Google Documentary” and discuss the power and
influence Google has in their industry and which market structure they seem to fall into.

Resources:

• Market Structures chart (blank and teacher filled in one)

• Economics: Today and Tomorrow textbook or an another high school economics

textbook

• Market Structures in Real Life student instruction page

• Computers with access to Prezi

• Computer & projector for students to share their Prezi

• Google anticipation guide

• “Google Documentary” either download to computer or have Internet access

• “Google Documentary” group discussion questions

Theory to Practice:

1
 October 18,
MRS. STOUDT
2010

Businesses in every industry utilize a variety of media to convince their consumers

that their products are better than that of the competition. Advertising, packaging,
testimonials, and market research are all common strategies that businesses use to do
this. These strategies may show up in television, movies, games, blogs, or websites. It
is important that students can not only identify the market structure a particular industry
operates in but also how this impacts the way in which that industry manipulates media
to their advantage.

In Curriculum 21 media educator David Considine is quoted as pointing out that

even though our generation of students has greater access to a larger variety of media
doesn’t mean they know how to evaluate the usage of this media (139). Through this
lesson students will question the presentation of the various media that industries use
due to their market structure. Students will begin to look at familiar media such as
Google through a “new lens” and will critically consider Google’s marketing and usage in
popular culture (145).

Standards:
Indiana Standards for Economics:

E.3.4: Identify the basic characteristics of the four market structures: monopoly,
oligopoly, monopolistic competition, and pure competition.

E.3.5: Explain how competition among many sellers lowers costs and prices.

E.3.7: Explain ways that firms engage in price and non-price competition.

ISTE NETS Standards:

1. Facilitate and Inspire Student Learning and Creativity

2. Design and Develop Digital Age Learning Experiences and Assessments

Instructional Plan:
Objectives: Students will be able to:

1) Characterize the four market structures of perfect competition, monopolistic

competition, oligopoly, and monopoly.

2) Judge individual industries to determine their market structure

3) Conclude how different market structures utilize different media to accomplish

their goal of maximizing profit.

2
 October 18,
MRS. STOUDT
2010

Lesson Plan:

30 minutes Market Structure Basics: Pass out the market structures chart to
students and then give each group of students (my students are sitting in groups)
one market structure to read about in their book and fill out the chart on. Then
give each student within each group a number 1-4 and now form 4 new groups
with at least one representative from each market structure. Students will then
share their knowledge about this market structure with the rest of their group and
fill in the rest of their chart. This can also be done as homework by each student.
Once everyone has their chart complete remind students that market structures
are on a continuum and have the students help summarize the characteristics on
the board. Explain that most industries don’t fall into the extreme ends of the
continuum (perfect competition & monopoly) but somewhere in the middle.

1 ½ class periods Market Structures for Real: Pass out the Market Structures in
Real Life project page and explain this to students. Have each group pick one of
the provided industries or else have a chosen industry approved. Take the class to
the computer lab to work on the project. Take some time in class the next day for
each group to present their Prezi to the class.

1 ½ class period Google Documentary: Pass out the Google anticipation guide the
class period before and have students fill this out for homework. Then at the
beginning of class briefly discuss their answers. Explain that the Internet and
technology has created some very interesting industries lately with varying
degrees of competition. We will be watching a documentary out of Australia on
Google and the power and influence it has within the search engine industry. Pass
out the Google discussion questions to students, explain that after the video
students will be discussing the questions as a group but individually they should be
looking in the video for information to help address the questions.

10 minutes Wrap-up: Revisit the anticipation guide to see if students’ opinions

have changed and discuss the tell tale signs of a true market structure.

Accommodations:

Special Needs: These students will either work in a group with higher level students in
which case the teacher will need to ensure the role the group gives these
students is challenging enough for them but not to the point that they are
unable to do it. The other option is if these students are the majority of the
class (I have some basic level classes) then I will pick out one industry for the
entire class to look at and the groups will be given parts to look at within this
industry.

3
 October 18,
MRS. STOUDT
2010

ESL Students: Instructions will be given in native language through

Speaktheword.com and students will be encouraged to look at the
group’s chosen industry from their home country’s perspective.
Students may also be paired up with a high level student.
Gifted/Talented Students: These students will chose their own industry (I will give a couple
of ideas but not a specific list) and they will have to predict what type of
market structure their industry will have and why. They will also assist the
special needs & ESL students as needed.
Resources:
Baker, F. (2010). Media Literacy: 21st Century Literacy Skills. In H. H. Jacobs (Eds), Curriculum 21:
Essential Education for a Changing World (133-152). Alexandria, VA: ASCD.
Clayton, G. (2003). Market Structures. In Economics: Principles & Practices (162-178). New York, NY:
Glencoe McGraw-Hill.
Tania, N. (Producer), & Van Veelen, L. (Director). (2006). Google Documentary [Motion picture]. Australia:
VPRO Backlight.

NAME:______________________________________

Economics

Market Structures
Market How How do How do Ease of How is Better for
Structure many companies products Entry? profit producers
sellers? compete? differ? maximized or
? consumers?
Why?

Perfect
Competition
A LOT There is no Products Extremely Marginal Consumers-
advertising, have no easy to Cost= better prices
companies differentiatio enter and Marginal but no
compete to n, they are exit the Revenue variety in
get the the exact market products
best price same Firms are
price
takers-
they must
take
whatever
price the
market
gives them

4
 October 18,
MRS. STOUDT
2010

Monopolistic
Competition
Market Many
How Advertisin
How do Similar
How do FairlyEase of Marginal
How is Consumers-
Better for
Structure (more
many g,
companies products,
products easy to
Entry? Cost=
profit still get
producers
than 5)
sellers? giveaways
compete? product
differ? enter and Marginal
maxim decent
or
, differentiati exit the Revenue
ized? prices (not
consumers
promotion on can be market as
? good as
al real or perfect
Oligopoly campaigns imagined competition
Few Advertising, differences
Similar Difficult to Margin )Producers-
but have
large giveaways, between
products, enter the al product
they have
seller s promotional products
may have market cost= differentiat
more
(Less campaigns real or since the margin ion
control over
than 5) imagined major al the price
Interdependent differences companies revenu since there
behavior- when create a e are few
one company high barrier sellers
changes a price
or product, the
others will follow

May lead to price

fixing and
collusion- formal
agreement to set
price (illegal)
Market Structures in Real Life
Monopoly

TYPES: 1 large They don’t Completely Very Margin Producer-

seller compete, they unique difficult al they can
Natural: cost have no products cost= control not
of competition margin only the
production al price but
are lower by revenu the product
having 1 e but
seller they
are
Geographic: price
absence of makers
sellers in a and
local area can
create
Technologica
any
l: ownership
price
or control of
manufacturi
ng method
or process

5
Government:
government
owns and
operates
 October 18,
MRS. STOUDT
2010

Rationale: Market economies are cutthroat with so much competition that prices are kept low
and the consumer has new and better products all the time, right? Actually in real life depending
upon the industry there may not be that much competition and this can impact the product the
consumer receives and the price they pay. Consumers need to be aware of the market structure
in which an industry operates to be able to critically analyze the products offered to determine
what is real and what is imagined.

Task:

1) As a group choose one of the following industries to investigate: health clubs,

restaurants, hair salons, cell phone, cars, airlines, and banks.

2) Now your group will investigate this industry and create a Prezi that addresses the
following topics:

a. Use the Internet & phone book to list the businesses in the South Bend area that
are in your industry (please remember that there may be several locations of the
same business, for example Red Lobster & Olive Garden is one business- Darden
Industries). On your Prezi include the business’ logo (if possible) or just a simple
list of businesses. (3 pts)

b. Look at each business’ product through their ads (print & video) and website.

i. What do all of the business’ products have in common? What differences

are there in the products? Are these real or imagined differences? On
your Prezi include pictures as examples of similarities & differences. (5
pts)

ii. If a new business were to enter this industry how easy or difficult would
you imagine it would be for the business to gain a share of the market?
Explain why. (2 pts)

iii. Which type of market structure do you think this industry is in? What
gives you the clues? (2 pts)

iv. How does knowing the type of market structure an industry is in help the
consumer? (2 pts)

v. Correctly site all your sources in MLA format. (2 pts)

3) Present your Prezi! Your Prezi should present the information in such a way that the
class will have to guess which market structure your industry is in before you tell them.
(4 pts)

4) Reflection: Please go the Survey Monkey link on my website to provide feedback on

this project (5 pts)

DUE DATE:
6
 October 18,
MRS. STOUDT
2010

Student Example Here

Market Structures in Real Life Grading Rubric

NAMES: _____________________________________________________

Criteria 0 pts 1 pt 2 pts 3 pts 4 pts 5 pts

Businesses There is no A few of the Some of the All NOT NOT

in the list of businesses businesses businesses in APPLICAPLE APPLICAPLE
Industry businesses in are listed are the industry
the industry from the presented in are
industry a creative presented in
manner a creative
manner

Similarities No Either a Only 1 Only 1 At least 2 At least 2

& similarities & similarity or similarity & 1 similarity & 1 similarities & similarities &
Differences differences difference is difference is differences is 2 differences 2 differences
with are included generally explained explained are are
examples, explained generally using explained explained
& real or (not both) and none are specific generally, using specific
imagined explained if examples some are examples
differences real or and a few explained if and explain if
imagined are real or real or
explained if imagined imagined
real or differences differences
imagined

Ease of No mention Mentions Explains the NOT NOT NOT

entry into of ease of ease of entry ease of entry APPLICAPLE APPLICAPLE APPLICAPLE
market entry but doesn’t
explain

Market No market Market Market NOT NOT NOT

Structure structure is structure is structure is APPLICAPLE APPLICAPLE APPLICAPLE
with clues mentioned mentioned chosen with
with no clues clues

Significanc No reference Briefly Connects NOT NOT NOT

e to to mentions similarities & APPLICAPLE APPLICAPLE APPLICAPLE
Consumers consumers consumers differences
to
consumers

NOT
Resources No resources Resources Resources NOT NOT
provided provided but provided in APPLICAPLE APPLICAPLE APPLICAPLE

7
 October 18,
MRS. STOUDT
2010

not MLA MLA format

format
Prezi Prezi is not Prezi is Prezi is Somewhat Prezi is easy NOT
organizatio created or disorganized somewhat easy to to follow and APPLICAPLE
n& presented to with few easy to follow with gives clues
presentatio the class clues to the follow with some to class as to
n market pictures pictures the market
structure structure

Google Documentary Anticipation Guide

Instructions: Please rate 1-5 (1 is strongly disagree, 5 is strongly agree) how much you
agree with each statement. Be prepared to defend and support your opinions!

____ 1. Google is the mostly commonly used search engine in the US.
____ 2. Technological industries like search engines have low barriers to entry and exit
and so are considered to have monopolistic competition.
____ 3. All information on the Internet should be free to access and available for anyone
to view.
____ 4. There are no real differences between search engines.
____ 5. There is no bias in search engines.
____ 6. The only moral and ethical issue involved in the search engine industry is taking
bribes to alter the order of search results.

Google Documentary Anticipation Guide

Instructions: Please rate 1-5 (1 is strongly disagree, 5 is strongly agree) how much you
agree with each statement. Be prepared to defend and support your opinions!

____ 1. Google is the mostly commonly used search engine in the US.
____ 2. Technological industries like search engines have low barriers to entry and exit
and so are considered to have monopolistic competition.
____ 3. All information on the Internet should be free to access and available for anyone
to view.
____ 4. There are no real differences between search engines.
8
 October 18,
MRS. STOUDT
2010

____ 5. There is no bias in search engines.

____ 6. The only moral and ethical issue involved in the search engine industry is taking
bribes to alter the order of search results.

NAMES: _______________________________________

Google Documentary Discussion Questions

Instructions: Please discuss the following questions as a group and have one person
summarize your discussion on this paper to be turned in at the end of class.

1. Many individuals were interviewed in this video about the role and purpose of
Google. What do you think the following people see as the purpose of Google:
Marissa Mayer (the Vice President), Brewster Kahle (founder of Internet Archive),
and Ian Brown (Open Rights Group member in London)?

2. Explain some of the ways Google tries to separate themselves from the
competition in their industry.

3. Why do you suppose the Google company is set up the way it is (20% time)? Do
you think this would be effective with all companies?

9
 October 18,
MRS. STOUDT
2010

4. What do you think Google’s motivation is in keeping information on individual

users? Should Google be concerned with the potential negative side of keeping
this information? Why?

5. What do you think is the future of information- public (free access to anyone) or
private (may be restricted or charged)? What do you think Google’s role in this will
be?

6. Should Google attempt to solve issues of privacy and security before developing
new technologies that may expose this? Explain.

7. Do you think Google is biased? Explain.

8. What market structure do you think Google is in? Why?

10
 October 18,
MRS. STOUDT
2010

9. What do you think the opinion is of the producers of this documentary concerning
Google?

11