Materials

  • CCB Mathematics pages 208 - 213

Standards

Objectives

  • Compare the features of monopoly and competition

  • Understand how demand affects the price of goods and services

Key Concept

  • When only one seller offers a product, the seller determines the price and the level of service. When two or more sellers provide the same product to the same group of customers, the sellers must take customers’ wants and needs into account.

Vocabulary

Tier 2 Competition
Demand
Innovation
Monopoly
Tier 3 Barrier to Entry
Market Structure
Test Words Multiple-Meaning Word

Evidence-Based Reading

  • Collaborative Reading: Enlarge a copy of the boxed text from page 209. Gather students in a group; then read the first sentence from the passage aloud, emphasizing accuracy and phrasing. Pass the text to a student to read one or two sentences aloud. Have each student read one or more lines, passing the text around until all students have participated. Provide corrections to phrasing and pronunciation as needed.

Workplace Connection

  • Find a Temp: Agency Help students begin their question lists by reminding them of the question words (who, what, where, when, why, and how) and instructing them to write two questions that begin with each word (for example: What benefits do you provide?; How will you notify me of job openings?). Write students’ suggestions on the board. Discuss which questions are likely to produce the most useful information and why.

Writing Practice

  • Write a journal entry in which you tell about a personal experience you have had comparing the prices and features of two or more similar products. What factors most affected your final decision about which product to buy? Remind students to include features about each product that they found compelling enough to influence their purchasing decision. Ask them to mention whether their decision hinged on price alone or if there were product features that overcame price and led them to purchase a higher-priced item. After students have finished their entries, invite volunteers to share their entries with the class.

Before Lesson

Ask students if they know what a monopoly is (a market structure in which a product is available from only one seller). Tell students that the market structures of monopoly and competition affect the types of goods and services available, the prices they pay for products, and even the creation of jobs. Explain that in this lesson, students will learn more about market structures, monopoly, and competition (a market structure in which similar goods and services are available from many sellers).

Background

Have students imagine that Mario’s, an Italian restaurant a mile away, is the only place in town to get pizza. Tell them that Mario’s pizza is delicious but expensive and that the restaurant does not deliver. Guide students in visualizing what may happen when Pizza Express-offering free delivery and lower prices opens nearby. (Possible responses: Mario’s would lower its prices, offer discount coupons, and begin a delivery service.) Brainstorm why Mario’s might take such steps. (Formerly a single seller, Mario’s now faces competition and must appeal to its customers in new ways to keep their business.)

Guided Practice

  • Monopolies and Competition
    • AT&T Reinvents Itself

Core Skill

Determine Central Ideas: When students have completed the exercise, pose each question aloud and work through the exercise as a class. Then direct students to go online to the business and financial sections of a major newspaper, such as The New York Times or The Washington Post. Have students answer the same questions regarding a business news article and invite volunteers to share their articles and responses with the class.

Interpret the Meaning of Words and Phrases: After students finish the exercise, tell them that the multiple-meaning words they are studying in the lesson also have the following meanings. Write the words and their meanings on the board in two columns. Ask students to match the terms in the left column with the meanings on the right.

  • barrier - request
  • competition - sell
  • demand - record
  • entry - fence
  • market - contest

Extension

Read-Aloud Pairs: Pair English language learners with fluent English speakers to read aloud the boxed text on page 210. Have the fluent English speakers read paragraph 1 aloud. Then reverse the roles to reread the same paragraph. Have the pairs continue this reading pattern through the four paragraphs of the passage. The fluent speakers should coach the English language learners when necessary.

Make Observations and Summarize Data: Divide the class into small groups and invite groups to choose one of the following topics: John D. Rockefeller, Ida Tarbell, The History of the Standard Oil Company, trusts, the Sherman Antitrust Act. Ask the groups to do online research on how their topic relates to monopolies. Tell students to collect and organize data, make observations, and then interpret their data, draw conclusions, and summarize their findings. Finally, each group should make a presentation to the class, citing evidence to support their conclusions

Lesson Review