Economics - Market Structures. Anyone else lost?

LiNgWiStIkZ

This has to be the most confusing thing I've ever come across in school (and I've been doing higher maths for 5 years).

Can ANYONE give me some tips on this? No matter what, I cannot grasp anything with this section of the course.

The rest of the Economics course is straight forward but this is so bloody complicated

Leejo

Monopoly, oligopoly, perfect and imperfect competition? Easiest part of the course for me, about the only thing that I don't have to think twice about when doing it.

lilmissprincess

Just the Diagrams

xOxSinéadxOx

I didn't know them properly when we did them last year but we revised them this year and I don't know why I didn't understand them, they're so easy! oligopoly is a bit iffy though.

Économiste Monétaire

What's the main problem you're having with market structures?

LiNgWiStIkZ

Économiste Monétaire wrote: »

What's the main problem you're having with market structures?

The diagrams, different assumptions, the questions regarding them, etc. all just boggles me

Mr Maroon

It's fairly straightforward really. The main thing is to learn off the diagrams for each one and about 5 assumptions for each (Some of the assumptions are even the same for more than one of the markets).

Beau x1

I find imperfect Competition is the easiest imo and from what I hear from my teacher is quite likely to come up on the mocks.

In a nutshell, Imperfect Competition is like many real life situations - coke and pepsi, mc donalds and burger king. Products are close substitutes (meaning they're like each other) but not homogenous (identical goods).

Monopoly is fairly straight forward, one firm has complete monopoly e.g. ESB. The thing with monopoly is there are barriers to entry in the market as in you can't just go and start selling electricity.

Perfect Competition is a bit confusing as there isn't really a real life example of it - agriculture is probably the closest one to it. Just sit down and read the assumptions of the market structures and that will help you understand them.

The penny suddenly just dropped like that for me the other day on them, and I understand them now. Try understanding the diagrams too, because on a market structure you're almost always asked to draw and explain an equilibrium position for a firm in x market structure in the short/long run. If you understand them, it really helps explaining them.

Good luck.

K4t

LiNgWiStIkZ wrote: »

This has to be the most confusing thing I've ever come across in school (and I've been doing higher maths for 5 years).

Can ANYONE give me some tips on this? No matter what, I cannot grasp anything with this section of the course.

The rest of the Economics course is straight forward but this is so bloody complicated

I was the same as you a few months ago.

You have to sit down with your book for a few hours and read through Chapter 10. Study the boxes with the figures and understand why the curve slopes downward or upward, what are fixed and variable costs etc.

Then make learn all the diagrams off by heart. That is a MUST for the exam anyway. You'll get there.

Time Magazine

LiNgWiStIkZ wrote: »

I've been doing higher maths for 5 years.

If you're good at HL Maths, ask on the Economics forum and I'll give you a proper answer.

If you're not good at maths, learn off the diagrams.

xOxSinéadxOx

ooohhh the economist!

I don't think you'll be great at economics if you can't do them. But like somebody said before if you apply it to something real in your head it makes sense

Kournikova

I love all these sections, the only part of the paper i can do.

Oligopoly is my fave part, i suppose cause its the most realistic.

LiNgWiStIkZ

Thanks guys. Yeah the teacher told us it's not like any other subject, learning wise. I totally agree with him - it's the only subject I know of where after homework and schoolwork, study is essential to even grasp it!

I guess hard work is the only answer. Thanks people:)

Fuascailt

Print out the marking schemes. They give detailed answers to every question for the last ten years- and you'll see they ask the same questions all the time about market structures. Use the marking scemes instead of a book- waaaaaay simpler

LiNgWiStIkZ

Thanks Fuascailt, what school are you in? DCS here:)

mick kk

rapid revision economics has good summaries of the market structures - anyone else used this?

Fuascailt

I did the ol' leaving last year- doing law in UCC now Seriously though, I did Economics an hour a week for sixth year, we used the marking schemes and I got an A1. Their soooo easy- its all bullet points

Delta Kilo

mick kk wrote: »

rapid revision economics has good summaries of the market structures - anyone else used this?

+1. Really good book.

Op, just learn off the marking schemes for the market structures because they ask the same questions every year. I would put money on it that Oligopoly will come up for the LC but have an idea of imperfect competition as well. Monopoly or perfect competition will not come u p so don't give them much time. (This is for the 2009 exam)