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Ch 12 2.11 Market failure: market power (HL): complete notes
Neat, exam-ready notebook-style notes for Ch 12 2.11 Market failure: market power (HL), following the IB Diploma syllabus, SL and HL. This chapter is part of the complete Economics Notes for IB Diploma Students (SL and HL): All 30 Topics.
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Free preview: Ch 12 2.11 Market failure: market power (HL) notes
A quick look at the chapter from our IB Diploma Economics notes. The full chapter notes have the detailed explanations, diagrams and practice questions with answers.
Topics in this chapter
- What you must be able to do
- Revenue and cost words used in this topic
- Allocative efficiency
- Natural monopoly
- A simple payoff matrix
- Price and non-price competition
- Measuring concentration: concentration ratios
- Government intervention in response to abuse of market power
“I can” checklist: what you must be able to do
- HL: I can describe perfect competition, monopoly, oligopoly and monopolistic competition and the degree of market power.
- HL: I can calculate profit, MR, MC, AR and AC from data and use TR − TC and MC = MR.
- HL: I can draw a price-taking firm with abnormal profit, normal profit and losses, and explain the long run.
- HL: I can explain allocative efficiency (P = MC) and draw the market with maximum community surplus.
- HL: I can draw a monopoly with abnormal profit, normal profit and losses, show the welfare loss against perfect competition and draw a natural monopoly.
- HL: I can explain collusion, interdependence, price wars, the incentive to cheat, a payoff matrix, price and non-price competition and concentration ratios, and draw a collusive oligopoly.
- HL: I can draw and explain monopolistic competition with a more elastic demand than a monopoly.
- HL: I can evaluate the advantages and risks of firms with market power and government responses (legislation, ownership, fines).
What is inside the full chapter notes
- Concept notes with 9 worked examples (every number computed)
- About 14 diagrams: price-taking firm, monopoly, welfare loss, natural monopoly, cartel, monopolistic competition
- Payoff matrix and concentration ratios
- Common mistakes and a "How to score" command-term box
- 12 Quick-check questions A-D, explained
- Paper 2 style data response (28 marks) and Paper 3 style policy question (18 marks)
- Quick reference and "I can" checklist
What you get in the pack
- All 30 topics of IB Diploma Economics for students taking Standard Level or Higher Level (first assessment 2022): what economics is, demand, supply, market equilibrium, behavioural economics, elasticity, government intervention, externalities, public goods, asymmetric information, market power, equity, measuring economic activity, aggregate demand and supply, macroeconomic objectives, inequality and poverty, monetary policy, fiscal policy, supply-side policies, international trade, trade protection, economic integration, exchange rates, balance of payments, sustainable development, measuring development, growth and development strategies
- Every syllabus statement covered in order, each marked SL or HL, with clear notes, tables and diagrams drawn for these notes
- Every diagram the guide names, drawn and labelled, plus worked examples and model answers that show how to earn the marks
- Quick-check multiple-choice questions with explained answers, plus original Paper 1 (extended response), Paper 2 (data response) and, for HL, Paper 3 (policy) style questions with full mark schemes (no past-paper reprints)
- Common mistakes and a how-to-score command-term guide for every topic
- Quick-reference sheet and an "I can" checklist at the end of every topic
- Colour PDF and a black and white copy of every chapter for printing
- Independent notes for IB Diploma students; not endorsed by or affiliated with the International Baccalaureate Organization (IBO)
All chapters in this pack
- Ch 1 1.1-1.2 What is economics? and How do economists approach the world?
- Ch 2 2.1 Demand
- Ch 3 2.2 Supply
- Ch 4 2.3 Competitive market equilibrium
- Ch 5 2.4 Critique of the maximizing behaviour of consumers and producers
- Ch 6 2.5 Elasticity of demand
- Ch 7 2.6 Elasticity of supply
- Ch 8 2.7 Role of government in microeconomics
- Ch 9 2.8 Market failure: externalities and common pool resources
- Ch 10 2.9 Market failure: public goods
- Ch 11 2.10 Market failure: asymmetric information (HL)
- Ch 12 2.11 Market failure: market power (HL)
- Ch 13 2.12 The market's inability to achieve equity (HL)
- Ch 14 3.1 Measuring economic activity and illustrating its variations
- Ch 15 3.2 Aggregate demand and aggregate supply
- Ch 16 3.3 Macroeconomic objectives
- Ch 17 3.4 Economics of inequality and poverty
- Ch 18 3.5 Demand management: monetary policy
- Ch 19 3.6 Demand management: fiscal policy
- Ch 20 3.7 Supply-side policies
- Ch 21 4.1 Benefits of international trade
- Ch 22 4.2 Types of trade protection
- Ch 23 4.3 Arguments for and against trade control and protection
- Ch 24 4.4 Economic integration
- Ch 25 4.5 Exchange rates
- Ch 26 4.6 Balance of payments
- Ch 27 4.7 Sustainable development
- Ch 28 4.8 Measuring development
- Ch 29 4.9 Barriers to economic growth and/or economic development
- Ch 30 4.10 Economic growth and/or economic development strategies