I. Analyzing Concepts. MONOPOLY Indicate if the following features exist in a market of Monopoly by putting YES and NO, otherwise. Change the underlined word/s to make the statement true for the market Monopoly. . _____ 1. Ease freedom of entry for new sellers into the market. _____ 2. Consumers enjoy variety of products. _____ 3. The seller is a price maker. _____ 4. Extra ordinary profits are enjoyed when prices exceed the production cost. _____ 5. There are many sellers in the market. _____ 6. The product is homogenous and differentiated. _____ 7.Advertising is used to maintain competition to induce more patrons.

OLIGOPOLY Write TRUE if the statement is correct under Oligopoly market and FALSE, otherwise. Change the underlined word/s to make the statement true _____ 8. Sellers collude to produce a price cartel. _____ 9. Product sold is unique. _____ 10. New sellers find easy to join the market. _____ 11. There could be a price leader. _____ 12. The market has many buyers with few sellers.

MONOPOLISTIC and PERFECT Competition Write: A. if it describes Monopolistic Competition B. if it describes Pure/Perfect Competition C. if it describes both market and D. if it describes neither of the two markets _____ 13. The market consists of many buyers. _____ 14. Branding, labeling, packaging and differentiations in physical attributes are practiced. _____ 15. Product is unique. Economics 2A - Price Theory: Basic Microeconomics 162 _____ 16. The seller is a price taker. _____ 17. Market price is determined by demand and supply interactions. _____ 18. Products have close substitutes. _____ 19. Market buyers and sellers are acting independently with each other. _____ 20. The seller is a price maker.

II. Discussing Concepts.

1. In a Capitalist economy, monopolies are discouraged so that no single seller can dictate or curve the prices of a particular product or service. With this, what conditions might give rise to monopoly market?

2. Oligopoly is a market characterized by few sellers of a commodity. Actions of each seller will affect the other sellers, though few (3 to 4 sellers) can affect their output, profit and willingness to sell. Compare and contrast the two models of oligopoly market: The Chamberlin Model and The Kinked Model.