Republic of the Philippines

Department of Education
NATIONAL CAPITAL REGION
SCHOOLS DIVISION OFFICE MUNTINLUPA CITY
MUNTINLUPA NATIONAL HIGH SCHOOL
SENIOR HIGH SCHOOL
NBP RESERVATION, POBLACION, MUNTINLUPA CITY
________________________________________________________________________________________________________________
DepEd Learning Activity Sheets (LAS)

Name of Learner: _____________________________ Track/Strand: __________________________

Grade Level: _________________________________ Section: ________________________________
Date Accomplished: ____________________________ Date Submitted: _________________________

APPLIED ECONOMICS
QUARTER 3 – WEEK 5: VARIOUS MARKET STRUCTURE

Most Essential Learning Competency

At the end of this activity sheet, you should be able to:
1. Differentiate various market structures
2. Describe and analyze the characteristics of perfect competition, monopolistic competition, oligopoly and
monopoly.

Instructions
To achieve the objectives cited above, you are to do the following:
1. Take your time reading the lessons carefully.
2. Follow the directions and/or instructions in the activities diligently.
3. Answer all the given tests and exercises.

PRE-TEST
Directions: Identify the words being described by the following sentences. Choose the answer from the box and write
your answer on the space provided.

MONOPOLY MARKET STRUCTURE HOMOGENOUS PRODUCT

PERFECT COMPETITION COMPETITION OLIGOPOLY

1. A homogenous product is sold by sellers. No single buyer can influence the price since he/she purchases
only a small amount.

2. In economics, this is a rivalry among various sellers in the market.

3. This depicts how firms are differentiated and categorized based on types of goods they sell and how their
operations are affected by external factors and elements.

4. Product that cannot be distinguished from competing products of other suppliers.

5. This exist when a single firm that sells in that market has no close substitute.
Background Information for Learners

https://businessjargons.com/market-structure.html

Market Structure refers to the competitive environment in which buyers and sellers operate. It is also defined as,
an economic model that is used to examine the competition prevailing in the market. Market structure is important in that
it affects market outcomes through its impact on the motivations, opportunities and decisions of economic actors
participating in the market.

Competition is the rivalry among various sellers in the market. As students, we are very much familiar with this
word because we are exposed with different competitions like spelling bees, quiz bees, and sports fest in school.

Market basically defined as a place where buying goods and services facilitates. Whereupon, in economics the
term “market” is the complete range or scope of all buyers and sellers to perform all marketing activities.

The degrees of competition in the market varies depending on the following factors:

 Number and size of buyers and sellers

 Similarity or type of product bought and sold

 Entry and exit of firms and input owners

 Degree of mobility of resources

 Degree of knowledge of economic agents regarding prices, costs, demand, and supply conditions

BASIC MARKET STRUCTURE

1. Perfect Competition – In this market, there are large numbers of buyers and sellers. Sellers offer a standardized
product, a homogenous good that is not different from the others in the market. Because of the large number of
buyers and sellers, no individual decision-maker can significantly affect the price of the product by changing the
quantity it buys or sells. Thus, the seller is a price-taker and has to follow the market price in selling their good.
Example: Agricultural Products

Characteristics:
 Large number of buyers and sellers
 Homogenous products
 Free entry/exit
 Perfect knowledge of prices and technology
 No transportation cost
 Absence of government and artificial restrictions
 2. Monopolistic Competition – This market combines some characteristics of perfect competition and monopoly.
The firm sell differentiated products, which are highly substitutable but are not perfect substitutes. They change
their products characteristics and has control over price and quantity.
Example: Restaurants, Professions.

Characteristics:
 Product differentiation
 Large number of firms
 Free entry and exit
 Some control over price
 Heavy expenditure on advertisement and other selling costs
 Product variation

3. Oligopoly – Under this market, a firm either produce homogenous or heterogeneous products. Only few sellers
dominate the market and they have control over the price of the product.
Example: Pharmaceutical, Telecom

Characteristics:
 Few sellers
 Interdependence
 Advertising
 Competition
 Entry and Exit barriers
 Lack of uniformity

4. Monopoly – This is a form of market where there is a single seller selling a particular commodity for which there
are no close substitutes.
Example: Electricity

Characteristics:
 Firm is itself an industry
 Full control over supply
 No close substitutes
 Barriers to entry
 Price maker
 Downward sloping demand curve

Significance of the Market Structure

The type of market structure in which the business operates will determine the amount of market power or control
the business owner will enjoy. Having much greater market power means having greater ability to control prices,
differentiate the products one offers for sale, thus, leading to opportunities for more profits.

MARKET STRUCTURE
Number of Number of Type of product Entry/Exit to Pricing power
Seller Buyer market
Perfect Many firms Many Homogenous. All Easy entry/exit to Standardized
Competition goods are perfect market pricing
substitutes
Monopolistic Many firms Many Product Easy entry/exit to Has some control
Competition differentiation. market over price of the
Some products are product
close substitutes
Oligopoly Few firms Unspecified Can either Difficult entry (due Has control over
homogenous or to government the price of the
heterogeneous regulations) product
 Monopoly Single seller Unspecified A single Entry blocked (due Has full control
homogenous to government over price of the
product with no regulations, capital product
close substitute requirement, etc.)

Exercises

Activity 1:

Directions: Identify what type of Market Structure are the following and write your answer on the table provided.

Fruits Vegetables Rice

Mcdonald’s Engineers

Nurses Pfizer Smart Telcom

Oil Companies Meralco

PERFECT MONOPOLOSTIC OLIGOPOLY MONOPOLY

COMPETITION COMPETITION

1. 1. 1. 1.

2. 2. 2. 2.

3. 3. 3. 3.

Activity 2: Fact or Bluff

Directions: Write FACT if the statement is true and BLUFF if the statement is false. Write your answer on the space
provided.

1. In a monopoly, many companies sell the same product.

2. Unilab pharmaceutical is an example of Oligopoly.

3. Monopolistic competition has no control over price of their goods

4. Perfect competition is a type of market structure that sells homogenous goods.

5. Market is defined as the one who has control over the price of goods.
POST-TEST

Directions: Write the letter of the correct answer.

1. You went to the mall to buy a pair of black shoes. You noticed that there are a lot of stalls selling the same
shoes and you asked them its price. All the sellers answered you the same price. This is an example of what
type of market structure?
A. Perfect Competition B. Monopolistic Competition C. Monopoly D. Oligopoly

2. You started your own lipstick brand shop. To keep up with the competition, you used state-of-the-art
packaging and made it more appealing to the eye of the consumers compared to other brands of lipstick in
the market. This is an example of what type of market structure?
A. Perfect Competition B. Monopolistic Competition C. Monopoly D. Oligopoly

3. The market for fruits is an example of a perfect competition. Why?

A. Sellers offer a nearly identical product
B. Many people buy and sell fruits
C. None of the above
D. A and B

4. 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

5. The type of market structure that has high entry and exit barrier such as government regulations.
A. Economy B. Monopoly C. Competition D. Market

6. This is the rivalry among various sellers in the market

A. Market B. Competitive C. Composition D. Competition

7. Toyota and Honda Company is an example of what market structure?

A. Perfect Competition B. Monopolistic Competition C. Monopoly D. Oligopoly

8. Here products are differentiated and entry and exit are easy
A. Perfect Competition B. Monopolistic Competition C. Monopoly D. Oligopoly

9. This market structure enjoys a lot of power in the market.

A. Perfect Competition B. Monopolistic Competition C. Monopoly D. Oligopoly

10. PLDT, SMART and Globe Telecom belong to which type of market structure?
A. Perfect Competition B. Monopolistic Competition C. Monopoly D. Oligopoly

References for learners

DINIO, ROSEMARY P. AND VILLASIS, GEORGE A. APPLIED ECONOMICS. REX BOOKSTORE

AppliedEconomics_Q3_Mod5_Various-Market-Structures (1).pdf

https://en.wikipedia.org/wiki/Market_structure

https://study.com/academy/lesson/homogeneous-products-definition-lesson-quiz.html

https://businessjargons.com/perfect-competition.html
 Prepared by:

Margie Kristal S. Talatayod

Name of Writer