Lesson Notes By Weeks and Term - Senior Secondary 2

Market structure

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Term: 1st Term

Week: 7

Class: Senior Secondary School 2

Age: 16 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Economics

Topic:-       Market structure

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

  1. Define market
  2. List and explain the types of market
  3. State the characteristics of the different types of market

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION

TEACHER’S ACTIVITY

STUDENT’S ACTIVITY

STEP 1

INTRODUCTION

The teacher reviews the previous lesson on price control and legislation

Students pay attention

STEP 2

EXPLANATION

She defines market. She lists and explains the types of market

Students pay attention and participates

STEP 3

DEMONSTRATION

She states the characteristics of the different types of market

Students pay attention and participate

STEP 4

NOTE TAKING

The teacher writes a summarized note on the board

The students copy the note in their books

 

NOTE

MARKET STRUCTURE

Market in economics can be defined as any arrangement, system or medium where buyers and sellers of goods and services are brought into commercial contact with one another for the purpose of transaction business.

TYPES OF MARKET ACCORDING TO PRICE AND OUTPUT DETERMINATION

  1. i) Perfect Market
  2. ii) Imperfect Market

 

PERFECT MARKET

This is the type of market in which neither to buyer nor seller can simultaneously influence the price and quantity supplied, this is because there are many buyers and sellers selling at almost uniform prices of a particular product or commodity.

CONDITION/CHARACTERISTICS OF A PERFECT MARKET

1) Large number of buyers and sellers

2) Homogenous commodity

3) Portable Goods

4) There is free entry and exits of buyer and seller

5) No transport cost

6) No Government Intervention

7) No preferential treatment

8) Free flow of information

9) Perfect mobility of factors of production

10) Each seller or buyer is a price taker

IMPERFECT MARKET

An imperfect market is a market situation whereby either the producer or buyer act in a way that has influence on either the price of the commodity or the quantity supplied of such commodity. An imperfect market lacks all or some of the features of a perfect market.

WHY IMPERFECT COMPETITION IS THE RULE:

  1. i) Transport Cost
  2. ii) Ignorance on the part of consumer

iii) Branding

  1. iv) The need for large capital investment
  2. v) Sole ownership

CHARACTERISTIC/CONDITION FOR IMPERFECT MARKET

  1. i) The cost of production in each firm differs from other firms
  2. ii) There is no freedom to join or leave industry as one wishes

iii) The goods produced are not the same through branding and trademarks

  1. iv) There are few sellers who can influence either price or output
  2. v) Seller treat buyers differently, he may sell at different prices
  3. vi) The goods may not be portable therefore they are sold at different prices.

TYPES OF IMPERFECT MARKET

Monopoly: This is a market situation where there is a single producer who acts in such a way that he alone determines either the price or quantity supply but he cannot do both at the same time.

CHARACTERISTICS OF MONOPOLY

  1. i) There is only one producer of the product
  2. ii) There is no free entry and exit

iii) There is no perfect knowledge about the market

  1. iv) No close substitute to the goods produced
  2. v) He is a price setter or maker
  3. vi) Lack of Homogenous product.

TYPES OF MONOPOLY

  1. i) Pure Monopoly i.e a single producer produces the entire goods
  2. ii) Bilateral Monopoly i.e only one producer and one buyer

iii) Discriminating Monopoly i.e selling the same product to different buyers at different prices.

OLIGOPOLY

This is a type of market where there are few sellers who control the market but many buyers e.g cement industry, cars, cigarette, steel rolling industry etc.

DUOPOLY

This is a type of market where there are only two sellers or firms who control the market with many buyers.

MONOPOLISTIC COMPETITION

This is a market situation where there are many sellers of close substitutes goods. It combines some features of monopoly and perfect competition.

CHARACTERISTICS OF A MONOPOLISTIC COMPETITION

1) Product differentiation

2) Heterogeneous commodity

3) Large number of buyers and sellers

4) Price variation

5) Free entry and exit

6) Advertisement

 

 

EVALUATION:    1. Define market

  1. List and explain the types of market
  2. State three characteristics each of each type of                    market

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively