Applied Economics g12 Abm Mod 5 Differentiate Various Market Structures

Applied Economics G12-ABM Mod 5 - Differentiate Various
Market Structures
Economics (Nueva Ecija University of Science and Technology)
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Applied Economics
Quarter 1 – Module 5:
Differentiate Various
Market Structures

Applied Economics – Grade 12
Alternative Delivery Mode
Quarter 1 – Module 5: Differentiate Various Market Structures
First Edition, 2020
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Applied Economics
Quarter 1 – Module 5:
Differentiate Various
Market Structures

Introductory Message
For the facilitator:
Welcome to the Applied Economics – Grade 12 Alternative Delivery Mode

(ADM) Module on Differentiate Various Market Structures!
This module was collaboratively designed, developed and reviewed by

educators both from public and private institutions to assist you, the teacher or
facilitator in helping the learners meet the standards set by the K to 12 Curriculum
while overcoming their personal, social, and economic constraints in schooling.
This learning resource hopes to engage the learners into guided and
independent learning activities at their own pace and time. Furthermore, this also
aims to help learners acquire the needed 21st century skills while taking into
consideration their needs and circumstances.
In addition to the material in the main text, you will also see this box in the
body of the module:
Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.
As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them
to manage their own learning. Furthermore, you are expected to encourage and
assist the learners as they do the tasks included in the module.
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For the learner:
Welcome to the Applied Economics – Grade 12 Alternative Delivery Mode

(ADM) Module on Differentiate Various Market Structures!
The hand is one of the most symbolized part of the human body. It is often
used to depict skill, action and purpose. Through our hands we may learn, create
and accomplish. Hence, the hand in this learning resource signifies that you as a
learner is capable and empowered to successfully achieve the relevant competencies
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This module was designed to provide you with fun and meaningful
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This module has the following parts and corresponding icons:
What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in the
module.
What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.
What’s In This is a brief drill or review to help you link

the current lesson with the previous one.
What’s New In this portion, the new lesson will be

introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
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What is It This section provides a brief discussion of the

lesson. This aims to help you discover and
understand new concepts and skills.
What’s More This comprises activities for independent

practice to solidify your understanding and
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answers to the exercises using the Answer
Key at the end of the module.
What I Have Learned This includes questions or blank

sentence/paragraph to be filled into process
what you learned from the lesson.
What I Can Do This section provides an activity which will

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into real life situations or concerns.
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Assessment This is a task which aims to evaluate your
level of mastery in achieving the learning
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Additional Activities In this portion, another activity will be given

to you to enrich your knowledge or skill of the
lesson learned. This also tends retention of
learned concepts.
Answer Key This contains answers to all activities in the

module.
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developing this module.
The following are some reminders in using this module:
1. Use the module with care. Do not put unnecessary mark/s on any part of
the module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
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If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are not
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We hope that through this material, you will experience meaningful learning
and gain deep understanding of the relevant competencies. You can do it!
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What I Need to Know
In this module, you will be able to differentiate the number of sellers, types of
products, entry/exit to market, and pricing power of the following:
Lesson 1: Market Structures
Lesson 2: Monopoly
Lesson 3: Monopolistic Competition
Lesson 4: Perfect Competition
Lesson 5: Oligopoly
What I Know
Directions: Read each question carefully. Choose the correct answer below each
question and encircle its corresponding letter.
1. It is one of the numerous infrastructures, systems, institutions, social relations,

and procedures wherein buyers and sellers usually interact with each other to
exchange goods and services.
a. market
b. economy
c. business
d. malls
2. It deals with strategic decision making and focuses on both economics and
marketing, making professional entrepreneurs precisely judge industry, policy
changes, and market news.
a. market
b. market structures
c. business
d. economy
3. Which of the following are the types of market structures?
I. Monopoly
II. Business
III. Oligopoly
IV. Economy

V. Market
VI. Monopolistic Competition
VII. Perfect Competition
a. I, II, III, VII

b. I, III, VI, VII
c. II, IV, V, VI
d. All of the above.
4. It usually emerges because there is a high barrier to enter and exit in a particular
market.
a. business
b. market
c. monopoly
d. economy
5. Are monopolists price setters?
a. Yes, because they are the only producer of the product they sell.
b. Yes, because they are NOT the only producer of the product they sell.
c. No, because the government doesn’t allow them.
d. No, because no one will buy.
6. Do monopolies cause deadweight loss in the economy?
a. Yes, because they are illegal businesses.
b. Yes, because they are not price setters.
c. Yes, because they can minimize their output production to put higher prices
and gain more profit.
d. No, they uplift the economy.
7. It pertains to the situation where several companies sell the same yet slightly
different products.
a. monopoly
b. trade
c. monopolistic competition
d. market
8. In a monopolistic competition, can every firm set the price?
a. Yes, because their products are different in their own way.
b. No, because that is not allowed.
c. No, because no one will buy if they increased the price.
d. Yes, because are not included in the market.
9. In a monopolistic competition, can consumers prefer one product over another?
a. Yes, it’s their right.
b. No, that’s not allowed.
c. No, their preference does not matter.
d. Yes, but they are not allowed to buy it.
10. Is there a type of market structure wherein the market has full control over
implying prices?
a. Yes, but that is only if there are uniform prices that depend on the demand
and supply.
b. No, the market doesn’t have the power to do that.
c. No, different companies will protest if that happened.
d. Yes, but only in foreign countries.

11. What do you call the market structure where many products are similar that
may substitute each other since they have the same features, price and, quality?
a. market
b. perfect competition
c. monopolistic competition
d. economy
12. Can companies manufacture identical products that are not branded?
a. Yes, there is a specific market structure for that.
b. No, companies won’t agree with producing identical products and not
branding it.
c. No, that is not allowed.
d. Yes, but that is only for a free trial.
13. It is a type of market structure where firms dominate the market by supplying
either similar or differentiated products.
a. similar market
b. monopoly
c. oligopoly
d. differentiated market
14. Are the participants in oligopolies price setters or takers?
a. They are price setters.
b. They are price takers.
c. They are both.
d. None of the above.
15. Can different firms be interdependent with each other?
a. Yes, what a single firm does can significantly affect the firms.
b. No, they have their own businesses.
c. No, that’s not allowed.
d. Yes, but that is illegal
Lesson
1 Market Structures
What’s In
A market is one of the numerous infrastructures, systems, institutions,

social relations, and procedures, wherein buyers and sellers usually interact with
each other to exchange goods and services. In relation to that, this lesson will
enlighten you of the different market structures that distinguish an economy.

You can let the learners give an example situation they notice in
the market to easily engage themselves with this lesson.
What’s New
Tune: Twinkle, Twinkle, Little

Star Market structures, what are
those? Send me help ‘coz I don’t know.
Is it needed for me to learn?
If that was the case then start the lesson.
What is It
Market structures are the key points in evaluating business’ economic

environments. It deals with strategic decision making and focuses on both
economics and marketing, making professional entrepreneurs precisely judge
industry, policy changes, and market news. The significant operational definition of
market structure is a concern to both economists and marketers since they have
different methodological approaches in this, and each of them has their strengths
and weaknesses.
Moreover, these are the most notable characteristics of market structures:
 The relationship between a seller to another seller, a seller to his/her buyer,

and many more.
 The product that has been sold and the extent of product differentiation,
which affects cross-price elasticity of demand.
 The number of companies or corporations, including the scale and range of
international competition, in the market.
 The concerns in entering and exiting the market.

 The dissemination of market shares for the largest firms.
 The number of buyers and how they behave to mandate a product’s price
and quantity.
 The turnover of customers which can be affected by the extent of consumer or
brand loyalty and the influence of persuasive advertising and marketing.
The interactions and variations in these aspects provided the existence of

different market structures, which are the following:
 Monopoly. Herein, there is a single merchant of a product for which there is

no close alternative.
 Monopolistic Competition in which differentiated product has many
vendors.
 Perfect Competition, wherein, a similar product has many sellers.
 Oligopoly, whereupon, there are few sellers of a standardized or a
differentiated product.
These market structures will further be discussed in the subsequent lessons.
What’s More
Directions: Choose the answer from the box. Write the letter of the correct one on
the space provided before each number.
a. market f. oligopoly
b. interaction and variations g. monopolistic competition

c. business professionals h. perfect competition
d. market structures i. monopoly

e. economics and marketing j. economists and marketers
1. These are the key points in evaluating business’ economic environments.
2. What do you call the type of market structure in which there is a single
merchant of a product for which there is no close alternative?
3. It is one of the social relations wherein people exchange goods and services.
4. Market structures deal with strategic decision making and focus on what?

5. It is a type of market structure wherein a similar product has many sellers.
6. Who are the people concerned about market structures because they have
different approaches in this said matter?
7. What do you call the type of market structure in which differentiated product
has many vendors?
8. Who can precisely judge industry, policy changes, and market news?
9. What provides the existence of different market structures?
10. It is a type of market structure wherein there are few sellers of a

standardized or a differentiated product.
What I Have Learned
Directions: Complete the statement by writing what you have learned in this lesson.
Cite also at least 3 to 5 concepts you have learned.
In this lesson, I have learned that market structures are
What I Can Do
Directions: Identify at least 5 characteristics of market structures you observe

every time you go to the marketplace. (3 points each)
1.
2.
3.
4.
5.

Lesson
2 Monopoly
What’s In
In the past lesson, you have learned that market structures are the key
points in evaluating business’ economic environments. Its interactions and
variations in different aspects provided the existence of monopoly, monopolistic
competition, oligopoly, and perfect competition. In this lesson, you will find out
more about the first one, which is a Monopoly.
Let your students guess what a ‘monopoly’ is all about by reading

the poem below.

What’s New
Take some time to read this poem:
Monopoly
Mono, mono, mono,
you are the only one.
You can manipulate the entire realm,
and can be surrogated by none.
Mono, mono, mono,
how does it feel to have the power?
By merely doing your job,
you make everyone cower.
What is It
A monopoly pertains to a situation wherein there is only a single company

that produces a certain product in the entire market. Because of that, they have
the power or the authority to manipulate their products, such as minimizing their
outputs to put higher prices in it and to gain more profit. In this situation,
consumers have a lesser benefit, especially when the product is essential to them,
making them buy it despite being expensive.

Monopolies commonly emerge because there is a high barrier to entry and exit in
a particular market. The three main factors that can become the reason for it are the
following.
 Ownership of a fundamental resource - If the key resource is solely owned

by a firm, the firm can limit the access to this source, therefore creating a
monopoly.
 Economies of scale – In some sectors, a single firm can sustain products or
goods at a lower price than two or more firms could, resulting in a natural
monopoly, which arises even without the intervention of the government.
 Government Regulation – To suffice the interest of the public, the government
usually restricts market entries in a legal way, which is through copyright
laws and patents.
Frankly said, monopolies are usually unwelcomed to society because it can cause
deadweight loss by producing lesser outputs than the competitive ones, yet still, have
higher prices. However, the government can react to these by demanding price
regulations, establishing competition laws, nationalizing the monopolies, or by not
doing anything at all.
What’s More
Directions: Read each question carefully and write TRUE or FALSE on the space
provided before each number.
1. In a monopoly, many companies sell the same product.
2. The government’s action can cause monopolies to emerge.
3. The consumers benefit more in buying monopolized products.
4. You are not allowed to buy a monopolized product.
5. The entry and exit are blocked in monopoly.
6. The firm’s ownership of a fundamental source can cause a monopoly.
7. There are substitutes or alternatives to monopolized products.
8. A natural monopoly can arise even without the government’s intervention.
9. Monopolies are usually welcomed to society.
10. Monopolies can cause a deadweight loss to the economy.
11. The government can demand price regulations for monopolies.
12. Monopolies are illegal businesses.

13. Competitive markets produce lesser outputs than monopolies.
14. The government cannot nationalize monopolies.

15. The monopolist can set the product’s price.
What I Have Learned
In this lesson, I have learned that monopoly is
What I Can Do
Directions: State if the given situation is a MONOPOLY or NOT. (3 points each)
1. Barbara went to the market yesterday to look for a cosmetic product.

She bought 5 pieces of it and they all have different brands.
2. Your mom asked you to buy a Brand A Pancit Canton in Aling

Nena’s Store. Sadly, they ran out of it so you just bought Brand X
Pancit Canton.
3. Achilles owns the only Art Shop in their town that’s why he raised
each material’s price and limited the products they make.
4. Jason went to the mall last week to purchase a gift for Clara. He
then noticed that there was a newly opened accessory shop and
bought a necklace for her despite being too expensive.
5. Your friend opened a cake shop. He then asked you to come and
buy some. You can’t complain so you ended up buying
one.
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Unexpectedly, it tasted good. When you came back there the
following week, the cake you bought last time was already
unavailable.
Lesson
3 Monopolistic Competition
What’s In
In the previous lesson, you learned that a monopoly pertains to a situation
wherein there is only a single company that produces a certain product in the entire
market. Moreover, you also found out that they have the power to control their
products, such as minimizing their outputs to put higher prices in it and to gain
more profit. On the other hand, this lesson will make you aware of the second type
of market structure: Monopolistic Competition.

You can provide other examples of companies in a monopolistic
competition for better retention in the learner’s mind.
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What’s New
Isabela went to the grocery store earlier along with her 7-year-old daughter
named Chelsea. When they arrived at the powdered milk’s corner, she asked her
daughter.
Isabela: Baby, what milk do you want? Milk A or Milk B?
A question then popped out of Chelsea’s mind, making her answer her mother with
another question.
Chelsea: Mom, why do I need to choose? Both are the same kind anyway. Why
do we have different brands?
What is It
When there is a numerous quantity of small firms competing against each

other, it is called a Monopolistic Competition. However, in this type of market
structure, several companies sell the same product but they have their differences.
Those differences give them market power which lets them charge higher prices for
a product, but is within a certain range. These key factors can include style, brand
name, location, packaging, advertisement, and pricing strategies, which became
every firm’s basis in marketing.
You can assume the following when discussing the monopolistic competition:
 Every firm is a price setter and can maximize their profit.
 They sell similar yet slightly different products.
 The consumers can favor a product more than the other one.
 There are easy entrances and exit in this market.
This type of market structure can be observed in reality. Some of the common
examples are:
 Cap’n Crunch, Lucky Charms, Froot Loops, and Apple Jacks, which are all
companies that sell breakfast cereals with small differences.
 McDonald and Burger King, which both sell slightly different burgers
 Nike and Adidas, which both sell running shoes, but are different in some
ways.
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What’s More
Directions: Read each question carefully. Fill in the blanks and choose the correct
answer from the box.
similar/same difference
price prefer/choose
entry/entrance monopolistic competition
basis profit
slightly different exit
(1) A is a type of market structure wherein there is a numerous

quantity of small firms competing against each other. In this market structure,
several companies can sell (2) yet (3) products. Moreover,
any firm can set the (4) , but only with a certain range. They can also
maximize their own (5) . The (6) in their products can be
in style, brand name, location, packaging, advertisement, and pricing strategies,
which became every firm’s (7) in marketing. There is also an easy
(8)
and (9) in this market. On the other hand, the consumers
can (10) a certain product over the other one.
What I Have Learned
In this lesson, I have learned that monopolistic competition is
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What I Can Do
Directions: Read each question carefully. Write MC if it is an example of a

monopolistic competition and NMC if it is NOT. (3 points each)
1. Cynthia recently opened her milk tea shop. A few weeks later, her friend,
Vilma, also opened one. They both sell the same product, which is milk
tea, but it is different in terms of style, packaging, and advertisement.
2. Edward owns a pizza shop, and it is the only one in their town. Due to that,
he decided to lessen the pizzas they produce every day to put a higher price
on it.
3. You went to the market to buy a dress for your sister. A floral dress and a
sexy dress caught your attention. You are sure that those are exactly your
sister’s type, but they are from different shops. In the end, you chose the
floral one because you trust its brand.
4. Elsa wants to buy shoes for her son, but she can’t choose whether it should
be Nike or Jordan. She then called her son to ask him, and he said he
prefers Jordan.
5. Alfredo owns the only butchery shop in their village. Every morning,
customers line up in front of his store to buy one because it easily gets out
of stock.
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Lesson
4 Perfect Competition
What’s In
In the previous lesson, you have learned about monopolistic competition

which is another type of market structure. You have learned that it is a type of
imperfect competition where producers offer products that are distinguished from
each other but not perfect substitutes.
In this lesson, you will also encounter another type of market structure that
involves competition. This structure is known as perfect competition.
To introduce this lesson, you can ask the students what does the
term ‘perfect’ means to them.
What’s New
Visualize yourself as a seller of bubble tea in a food court. Your bubble tea
includes tapioca pearl, cream cheese, and cookies. In the same food court, two other
bubble tea stalls are offering the same product as yours. Among you and the other
sellers, no one can change the price of the product since everyone is aware that it
costs 85 pesos each large bubble tea. Once you have increased the price of your
product, the consumers may tend to buy on other stalls since they are also selling
the same item at a cheaper price. In this situation, it shows a perfect competition
market structure.
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What is It
Perfect competition is a type of market structure where many products are

similar and may substitute each other since they have the same features, price and,
quality. There are many sellers and consumers in this type of market with almost
the same products. Moreover, a perfectly competitive market requires few barriers to
enter and it is easy for producers to quit whenever they want. They also have uniform
prices that depend on the demand and supply which means that the market has full
control over implying prices.
Perfectly competitive markets show these characteristics:
 Both the producers and consumers have perfect knowledge without

information failures. The details and information in this market are easily
accessible to all participants. Thus, risk-taking is not necessarily important
and the power of an entrepreneur is limited.
 Producers and consumers are making coherent decisions for their benefit. For
instance, producers make decisions to maximize their profits, and consumers
make decisions to maximize their utility.
 There are no hindrances to enter nor exit from this type of market.
 Companies manufacture identical products that are not branded.
 Producers don’t have the power to influence the market price nor the
condition.
What’s More
Directions: Determine whether the following characteristics are describing a perfectly

competitive market. Write YES if it describes it, while NO if it does not.
1. There are no barriers to entering a perfectly competitive market.
2. There are no barriers to exiting a perfectly competitive market.
3. Entrepreneurs have control over implying prices.
4. The products are almost similar to each other.
5. It is easy to enter this market.
6. All information is accessible to all.
7. Neither the producers nor consumers have perfect knowledge.
8. Producers make decisions for the benefit of the consumers.
9. Producers make decisions to maximize their profits.
10. Consumers make decisions to minimize their utility.
11. Sellers can easily increase the price of their products.
12. Entrepreneurs have uniform prices for their products.
13. Companies produce different branded products.
14. Taking risks in this market is important.
15. The power of producers is unlimited.
16

What I Have Learned
In this lesson, I have learned that perfect competition is
What I Can Do
Directions: Read each question carefully. Tell whether it is an example of a perfect

competition market or not. Put a check on the column of your answer.
SITUATIONS PERFECT NOT

COMPETITION
1. You went to a bazaar to buy a pair of shoes. You noticed
that the products from different stalls are similar then you
asked for their prices. All of the sellers answered you at
the same price.
2. A producer decided to increase the price of his product
without considering the prices from other stores.
3. An entrepreneur wants to start a cosmetic shop.
However, she needs to comply with the requirements and
acquire legal documents such as permits and licenses.
4. You decided to create a small snack house. Before you
established your stall, you considered first the products
and prices of your competitors.
5. Nena wants to buy a new smartphone for her online
classes. However, when she asked how much does it cost,
it is expensive. Now, she is stuck between purchasing the
product or not at all.
6. Unlike other booksellers, Alfredo increased the price of
the books he sells.
7. In Manila, a lot of milk companies manufacture
identical products that are all branded.
8. You and your sister have different milk tea stalls in the
market. However, the product you both sell and its price
are the same as hers.
9. You walked around the whole mall and you found out
that there were 10 photo booth stalls. You also noticed
that they all have the same fees.
10. Kristine is the only seller of graham balls in their
school that’s why she increased its price.
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Lesson
5 Oligopoly
What’s In
In the previous lesson, you have learned about the market structure perfect
competition. You were able to know its characteristics such that it involves many
producers with almost the same products and prices. Besides, an individual cannot
increase the price of his/her product as the customers will turn to other producers.
After knowing those, you will be able to understand another market
structure in this lesson. You will encounter the last market structure which is an
oligopoly.

Emphasize the characteristics of this market structure for the
students to determine its difference from the other types.
What’s New
Imagine yourself starting to build an automobile business. Since you are just
a beginner, you will set your price lower than your competitors. In this way, you
can attract more customers as they may notice the difference in price. Once you
already have more customers compared to other companies, they would be forced
to lower their prices for them to gain more clients and sales. This situation shows
an oligopoly market structure.

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What is It
An oligopoly is a type of market structure where firms dominate the market

by supplying either similar or differentiated products. There are only a few companies
in this structure and they have control over price implying. It is also difficult to enter
this market since there are a lot of barriers. Moreover, participants in oligopolies are
price setters rather than takers. Some examples of oligopoly companies are the
automobile industry, the steel industry, aircraft manufacturing industry, etc.
Oligopoly markets show these characteristics:
 Entrepreneurs maximize profits.

 Oligopolies set prices rather than take price.
 There are a lot of barriers. It includes government licenses, economies of
scale, patents, and access to expensive and complex technology. Also, some
government policies are favoring the current companies in the industry so it
is hard to enter for beginners.
 Interdependent. Like for example, if one firm change and decreases its price,
it will significantly affect the other firms.
 Rampant advertising since most companies use national media to promote
their products.
What’s More
Directions: Identify whether the example companies are oligopolies or not. Write
YES if it is and NO if not.
1. Automobile industry 12. Airlines
2. Bubble tea shop 13. Sari-sari store
3. Snack house 14. Network providers
4. Mass media company 15. Aircraft manufacturing industry
5. Oil and gas industry
6. Cellular phones company
7. Taco stall
8. Pharmaceuticals company
9. Poultry shop
10. Aluminum and steel company
11. Computer company
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What I Have Learned
In this lesson, I have learned that oligopoly is
What I Can Do
Directions: Read the situations carefully. Tell whether it is an example of oligopoly

market or not. Put a check on the column of your answer.
SITUATIONS OLIGOPOLY NOT

1. A businessman started his pizza store. He looks at
the prices of pizza in the market. After knowing it, he
also imposes the same price to his products.
2. An aircraft manufacturing company imposes a
30% discount for all their products as part of their
holiday promo. They have gained more customers
than normal days. Due to this, other competitors
decided to reduce their prices as well.
3. In Quezon City, a newly established automobile
company created a grand opening promo. They are
selling their products with several discounts.
Meanwhile, other companies also created a promo
to maintain their high sales despite the promo of
the
newly established company.
4. In the mall, there are only few stalls which sell
shakes. You noticed that one of the stalls have higher
price than the others.
5. Unlike Jake and other competitors, Sarah did not
increase the price of the salad she sells.
20
Assessment
Directions: Read each question carefully. Encircle the letter of the correct answer.
1. Can different firms be
interdependent with each other? loss in the economy?
a. Yes, because they are illegal
a. Yes, what a single firm does can
businesses.
significantly affect the firms.
b. Yes, because they are not price
b. No, they have their own
setters.
businesses.
c. Yes, because they can minimize
c. No, that’s not allowed.
their output production to put
d. Yes, but that is illegal.
higher prices and gain more
2. It deals with strategic decision profit.
making and focuses on both d. No, because they uplift the
economics and marketing, making economy.
professional entrepreneurs precisely
6. In a monopolistic competition, can
judge industry, policy changes, and
every firm set the price?
market news.
a. Yes, because their products are
a. market different in their own way.
b. market structures b. No, because that is not allowed.
c. business c. No, because no one will buy if
d. economy they increased the price.
3. It is one of the numerous d. Yes, but that is illegal.
infrastructures, systems, institutions, 7. Is there a type of market structure
social relations, and procedures, wherein the market has full control
wherein buyers and sellers usually over implying prices?
interact with each other to exchange a. Yes, but that is only if there are
goods and services. uniform prices that depend on
the demand and supply.
a. market
b. No, the market doesn’t have the
b. economy
power to do that.
c. business
c. No, different companies will
d. malls
protest if that happened.
4. It usually emerges because there is d. Yes, but that is illegal.
a high barrier to enter and exit in a 8. Are the participants in oligopolies
particular market. price setters or takers?
a. business a. They are price setters.
b. market b. They are price takers.
c. monopoly c. They are both.
d. economy d. None of the above.
5. Do monopolies cause deadweight 9. What do you call the market
21

structure where many products are 12. Can companies manufacture
similar that may substitute each other identical products that are not
since they have the same features, branded?
price and, quality?
a. Yes, there is a specific market
a. market structure for that.
b. perfect competition b. No, companies won’t agree
c. monopolistic competition with producing identical
d. trade products and not branding it.
10. It pertains to the situation where c. No, that is not allowed.
several companies sell the same yet d. Yes, but they cannot sell it.
slightly different products. 13. In a monopolistic competition, can
a. monopoly consumers prefer one product over
b. trade another?
c. monopolistic competition a. Yes, it’s their right.
d. market b. No, that’s not allowed.
11. Which of the following are c. No, their preference does not
the types of market structures? matter.
d. Yes, but they are not allowed to
I. Monopoly
buy it.
II. Business
14. It is a type of market structure
III. Oligopoly where firms dominate the market by
supplying either similar or
IV. Economy
differentiated products.
V. Market
a. similar market
VI. Monopolistic Competition b. monopoly
VII. Perfect Competition c. oligopoly
d. differentiated market
15. Are monopolists price setters?
a. I, II, III, VII
a. Yes, because they are the only
b. I, III, VI, VII
producer of the product they
c. II, III, V, VI sell.
b. Yes, because they are NOT the
d. All of the above.
only producer of the product
they sell.
c. No, because the government
doesn’t allow them.
d. No, because that is illegal.
22

Additional Activities
Directions: Match the corresponding definition or characteristics to the market

structures. Write the letter of the appropriate answer from the box below.
A. Monopoly C. Perfect Competition
B. Monopolistic Competition D. Oligopoly
1. Composed of few companies.
2. Type of imperfect competition.
3. Products don’t have close alternatives.
4. Producers cannot influence the price in the market.
5. Products can substitute each other.
6. Merchants have the power or the authority to manipulate their products.
7. Entrepreneurs are price setters but within a certain range.
8. Entrepreneurs are price takers.
9. Products are differentiated but not perfect substitutes.
10. The firms are interdependent with each other.
11. Information are easily accessible.
12. Products are almost similar.
13. Contains a single firm.
14. It is usually unwelcomed to society.
15. Most companies use national media for advertisements.
23

Answer Key
marketing.
persuasive advertising and
10. F
of influence the and
9. consumer or brand loyalty
B
8. C MONOPOLY
of extent by the affected 4.
7. G 5. MC
be can which customers
6. J MONOPOLY 3.MC
of turnover The •
5. H 4. 2. NMC
and quantity.
4. E MONOPOLY
price product’s mandate 1.
3. 3. MC
to behave they how and What can I do:
A2. I 2. NOT
of buyers • The number
1. 1. NOT Competition
largest firms.
D
the for shares market Monopolistic
More: do:
What’s of dissemination • The Wh at ca nI Lesson 3:
and exiting the market. MONOPOLY
s • The concerns in entering
uctu re Lesson 2: 10. prefer/choose
Str in the market.
Market 9. exit
competit ion, international 15. TRUE
Lesson 1:
of range and scale the 14. FALSE 8. entrance/entry
15. A
including corporations, 13. FALSE
14. A 7. basis
or companies 12. FALSE
13. C 6. difference
of number The • 11. TRUE
12. A
elasticity of dem and. 10. TRUE 5. profit
11. B
cross-price affects which 9. FALSE 4. price
10. A
differentiation, product 8. TRUE
9. 3. slightly different
A been sold and the extent of 7. FALSE
8. 2. similar/same
A C has that product • The 6. TRUE
7.
and many more. 5. TRUE competition
6. C
buyer, his/her to seller 4. FALSE
5. 1. monopolistic
A C a seller to another seller, a 3. FALSE
4.
• The relationship between
2. TRUE
3.
B 1. FALSE What’s More
2.
B Any of the following: more: COMPETITION
1.
A What can I do: What’s
Know: Structures MONOPOLY STIC MONOPOLI
What I Lesson 1: Lesson 2: Lesson 3:
Market
24

Answer Key
10. Not
9. Perfect
Com petition
8. Per fect
Competition 15. A 10. C 5. C 15. D
7. Not 15. YES
14. C 9. 4. C 14. A
6. Not 14. YES
13. A B
8. 3. 13. A
5. Not 13. NO
12. A A 7. A
2. 12. C
4. Perfect 12. YES
Competition 11. B 6.A B
1. 11. C
3. Not 11. YES
A A 10. D
2. Not 10. YES
Assessment: 9.
1. Perfect 9. NO B
Competition Lesson 1-5: 8. C
8. YES
7.
What can I do: 7. NO B
5. NOT 6.
Competition 6. YES A C
4. NOT 5.
Lesson 4: Perfect 5. YES
3. O LIGO POLY 4. C
4. YES
2. OLIGOPOLY 3.
15. NO 5. YES 10: NO 3. NO A
1. NOT 2.
14. NO 9. YES 4. YES 2. NO B
1.
13. NO 8. NO 3. NO 1. YES D
12. YES 7. NO 2. YES More: What can I do:
Oligopoly Activity:
11. NO 6. YES 1. YES What’s
Lesson 5: Additional
What’s more: Oligopoly
5:
Competition Lesson 5:
Lesson 1-
Lesson 4: Perfect
References
Avila-Bato, J., & Viray, E. Applied Economics. Anvil Publisher.
Leano, R. Applied Economics for Senior High School.
Online, A. (2017). AU Online. Retrieved from https://online.aurora.edu/types-of-

market-structures/
Zeder, R. (2016). Quickonomics. Retrieved from

https://quickonomics.com/market- structures/.
25

For inquiries or feedback, please write or call:
Department of Education – Region III,

Schools Division of Bataan - Curriculum Implementation Division Learning
Resources Management and Development Section (LRMDS)
Provincial Capitol Compound, Balanga City, Bataan Telefax:
(047) 237-2102
Email Address: bataan@deped.gov.ph

Applied Economics g12 Abm Mod 5 Differentiate Various Market Structures

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Applied Economics G12-ABM Mod 5 - Differentiate Various

Studocu is not sponsored or endorsed by any college or university

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Published by the Department of Education

Development Team of the Module

Writer: Raynie E. Navarro

Printed in the Philippines by Department of Education – Schools Division of Bataan

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Welcome to the Applied Economics – Grade 12 Alternative Delivery Mode

This module was collaboratively designed, developed and reviewed by

Notes to the Teacher

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Welcome to the Applied Economics – Grade 12 Alternative Delivery Mode

This module has the following parts and corresponding icons:

What I Know This part includes an activity that aims to

What’s In This is a brief drill or review to help you link

What’s New In this portion, the new lesson will be

What is It This section provides a brief discussion of the

What’s More This comprises activities for independent

What I Have Learned This includes questions or blank

What I Can Do This section provides an activity which will

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Additional Activities In this portion, another activity will be given

Answer Key This contains answers to all activities in the

At the end of this module you will also find:

References This is a list of all sources used in

The following are some reminders in using this module:

the module. Use a separate sheet of paper in answering the exercises.

included in the module.

3. Read the instruction carefully before doing each task.

5. Finish the task at hand before proceeding to the next.

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Lesson 1: Market Structures

Lesson 3: Monopolistic Competition

Lesson 4: Perfect Competition

1. It is one of the numerous infrastructures, systems, institutions, social relations,

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a. I, II, III, VII

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A market is one of the numerous infrastructures, systems, institutions,

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Tune: Twinkle, Twinkle, Little

Market structures are the key points in evaluating business’ economic

 The relationship between a seller to another seller, a seller to his/her buyer,

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The interactions and variations in these aspects provided the existence of

 Monopoly. Herein, there is a single merchant of a product for which there is

These market structures will further be discussed in the subsequent lessons.

b. interaction and variations g. monopolistic competition

d. market structures i. monopoly

1. These are the key points in evaluating business’ economic environments.

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9. What provides the existence of different market structures?

10. It is a type of market structure wherein there are few sellers of a

What I Have Learned

In this lesson, I have learned that market structures are

Directions: Identify at least 5 characteristics of market structures you observe

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points in evaluating business’ economic environments. Its interactions and

variations in different aspects provided the existence of monopoly, monopolistic

more about the first one, which is a Monopoly.

Notes to the Teacher