Introduction
Topic: Dynamics of perfect and imperfect markets (Market
Structures)
In this topic we are going to learn and have a broad focus on market
structures and how they are organized (dynamics). We have four types of
market structures, and all of them are usually examined as Essays (40
marks) and long questions (8 marks).
Let us look on the first Market structure which is Perfect Competition and
how it is organized. click on the link ABOVE for the introduction of PERFECT MARKET/COMPETITION.
Task
With Assistance of the above videos, By the end of this lesson, learners will be able to..
1. DEFINE A PERFECT MARKET.
2. EXPLAIN THE NATURE OF A PERFECT MARKET
3. DISCUSS THE NATURE OF PRODUCTS OF A PERFECT MARKET
4. IDENTIFY THE LOSS, PROFIT AND PROFIT MAXIMIZATION
5. DISCUSS WHY IT IS NOT POSSIBLE FOR A PERFECT COMPETITOR TO SET PRICES.
You are required to watch the videos above in order to understand and complete the below questions relating to our topic.
Class work: 06/09/2022
- Define Perfect Market. (2)
- List any 4 characteristic of a perfect market. (4)
- Explain the meaning of the concept "homogenous" in this instance. (3)
- Elaborate why every participant in this market is a price taker. (4)
- Distinguish between heterogenous and homogenous. (6)
- with a graphic illustration, explain how an individual business makes profit in the short-run. (8)
- Briefly discuss the Anti-monopolistic policies (competition policies).(8)
TOTAL:35 MARKS
NOTE: THIS CLASSWORK IS PREPARING YOU FOR NEXT WEEK'S CLASS TEST. Good luck !!
Process
- Go to the introduction feature and read the introduction and access the introductory video.
- Go to the Task feature and watch the attached videos for better understanding with regards to this topic.
- Also refer to your Mind the gap study guide. after doing that, you are required to complete the given classwork.
- Go to the evaluation section/ to find Corrections for the 06/09/2022 classwork.
Evaluation
Possible Answers 06/09/2022
1. Define Perfect Market?(2)
- Perfect competition occurs in a market structure with a large number of
participants who have access to all required information about the market
place and are all price-takers. Prices are determined by demand and
supply. Examples of market structures demonstrating most conditions of
a perfect competition include the stock exchange, the foreign exchange
market, the central grain exchange, and agricultural produce markets.
A perfect market is a market where no single buyer or seller has a noticeable
influence on the price of a good. This gives a true reflection of the scarcity
value of goods and services. (accept any other relevant answers)
2. List any 4 characteristic of a perfect market. (4)
- Products are homogenous
- there are no barriers to entry and exit
- Free competition
- no discrimination
(accept any other relevant answers)
3. Explain the meaning of the concept "homogenous" in this instance. (3)
- Products must be identical.
- There should be no differences in style, design and quality.
- In this way products compete solely on the basis of price and can be purchased anywhere
(accept any other relevant answers)
4. Elaborate why every participant in this market is a price taker. (4)
- Sellers are price takers, they accept the prevailing market price.
- if they increase prices above the market price, they will lose customers.
(accept any other relevant answers)
5.Distinguish between heterogenous and homogenous. (6)
- Homogenous products are considered to be homogenous when they are perfect substitutes and buyers perceive no actual or real differences between the products offered by different firms. Price is the single most important dimension along which firms producing homogenous products compete.
- "Economic heterogeneity refers to differences in capital assets, livelihoods, income and other economic endowments. These differences can make it more or less difficult for people to communicate, trust and co-operate with each-other.
(accept any other relevant answers)
6. With a graphic illustration, explain how an individual business makes profit in the short-run. (8)
7.Briefly discuss the Anti-monopolistic policies (competition policies).(8)
The Competition Act 89 of 1998 intends:
- to provide for the establishment of a Competition Commission responsible for the investigation, control and evaluation of restrictive practices, abuse of dominant position, and mergers; and
- for the establishment of a Competition Tribunal responsible to adjudicate such matters; and
- for the establishment of a Competition Appeal Court; and
- for related matters
(accept any other relevant answers)
TOTAL:35 MARKS
PASS CRITERIA
|
Level 1 |
Level 2 |
Level 3 |
Level 4 |
Level 5 |
Level 6 |
Level 7 |
|
0-29% |
30-39% |
40-49% |
50-59% |
60-69% |
70-79% |
80-100% |
PASS MARK
11.5(50%) TO 35(100%)
NOTE!! Anything below 50% will be considered as fail.
Conclusion
REFELECT ON THE FOLLOWING.
1. WAS THE LESSON INTERESTING?
2. WERE THE VIDEOS USEFUL?
3. WAS IS EASY TO FUCNTION WEBQUEST?
4.DOES WEBQUEST LOOK INVITING AND APPEALING?
5. IS THE INFORMATION ACCURATE?
Credits
- Mind the Gap Economics Grade 12.
- https://youtu.be/nR-5mfMoAbc
Teacher Page
- Mr Lungelo Ande Marvin Nxumalo
- B.Ed SP/FET (EMS ,Economics & CAT) (year 3)
- PHONE NUMBER: 0765081709
- EMAILS: lungeloande@gmail.com / 220000492@mycput.ac.za
-