Republic of the Philippines

DEPARTMENT OF EDUCATION
Region IV-A CALABARZON
DIVISION OF RIZAL
Morong National Senior High School
APPLIED ECONOMICS

NAME: _________________________________ DATE: ____________________

GRADE: ____________ STRAND: _________________
SUBJECT: Applied Economics TEACHER: JOSE JOHN SM. VOCAL

I. Read the questions carefully. Identify the type of market structure for each item. Write your
answer on the space provided.

1. If Company A competes with several firms in the industry but with product homogeneous to their
offers on shelves, what market structure does it enter?
_____________________________________

2. If BCX Company competes with few large firms in the industry but with differentiated products
they offer on shelves, what market structure does it enter? ______________________________

3. If there are several barriers on the entry and exit of firms in the industry due to huge amount of
capital needed, what market structure are they in? ____________________________________

4. If Company X is the only provider of electricity energy in Metro Manila, what market structure
does it join? _______________________________________

5. ABM Supermarket has joined many and small marketers in the industry with several competitors
selling the same products. What market structure does it join?
______________________________

II. Where Do I Belong?

Classify the products and services below. Write what market structure they should belong. Write
your answer on the table below.

agricultural markets, internet providers, foreign exchange (FOREX), markets electricity

provider, public (MRT) transport, telecom companies, gasoline stations, auto/car companies,
flower shops,
barber shops, car wash services, automotive services (source: educba.com)

Perfect Competition Monopoly Monopolistic Oligopoly

Competition

1. 1. 1. 1.

2. 2. 2. 2.

3. 3. 3. 3.

III. Match the following market structures (SET A) with their characteristics (SET B). Write the
LETTER on space provided.

SET A SET B
1. Perfect Competition A. Sole seller has the full power to set prices
2. Monopolistic B. Entry is difficult and huge capital investment may be the barrier to enter
Competition the industry
3. Oligopoly C. Sellers offer close substitutes to the end users
4. Monopoly D. Homogeneous product is offered by many and small sellers
IV. Activity 1: Am I Right or Am I Wrong?

Directions: Write Confirm if the statement is correct and write Reject if the statement is incorrect. Write
your answer on the space provided before the number.
 1. Monopoly is a market structure in which there is only one buyer of a product for which there are
no close substitutes.
2. Under oligopoly the action of each firm does not affect other firms.
3. Monopolistic Competition allows such variety of choices to the sellers.
4. In Perfectly Competitive Market the producers have the power to influence the price of the
product.
5. Oligopoly is a market structure in which there are few sellers of a product and additional sellers
cannot easily enter the industry.
6. The consumers have the power to influence the price of the products and services in monopsony.
7. Monopolists has no power to determine its output level and the price of their product.
8. Government is the consumer in monopsony and the government employees are the producers.
9. Advertisement is very important in perfectly competitive market to encourage buyers to buy
certain products.
10. Oil industry is an example of oligopoly.

IV. Activity 3. Market Structure Board

Fill up the table by giving the needed information regarding market structure.

Market Structure Number of Sellers Types of Entry/Exit to the Pricing Power

Products/Services Market
Perfectly
Competitive
Market

Monopoly

Oligopoly

Monopsony

Monopolistic
Competition

Reflection:

What I have learned in this activity?

References:

Dinio,Rosemary P. and Villasis George A, Applied Economics,2017 edition, Rex Book Store
https:/www.economicshelp.com, https:/www.coursehero.com