Unit 2.11: Market power (HL only)
Introduction
This is a link page to sub-pages, containing lesson plans and learning activities, which provide activities and lesson plans for the new microeconomics unit, 2.11: Market power.
Typically each lesson plan includes resources to use on an interactive whiteboard and worksheets to print. The pages have full student access to give maximum flexibility to the teacher and the student. There are theoretical notes for extended reading and teacher notes at the top that provide timing information lesson objectives and activity instructions.
Links to pages with lesson plans for unit 2.11 (HL only)
Direct links to the unit pages can be accessed at:
Assessment map
This page provides a map of the various assessments included in the unit, including short answers responses, essays and areas for discussion. I have included a section A and section B blank essay template...
Production (HL only)
This page begins unit 2.11 and focuses on the relationship between output, time and variable inputs into a business. This includes the concept of diminishing returns. A simple exercise to start off this...
Revenue theory (HL only)
This lesson focuses on more definitions of costs and revenue and contains several paper three-type questions. Learning by doing is an effective way for your students to learn the primary concepts.
Average and marginal revenue short answer questions
This page includes a short, relatively straightforward revision exercise that you can distribute to your classes to complete either in class or at home. I generally give this to my classes, have them...
Costs of production (HL only)
This page begins the section of the course on revenues and costs of a business. I find that I am very often surprised by the confusion that the word cost means to many IB economics students, with so many...
Economies and diseconomies of scale (HL only)
This lesson introduces the concept of economies and diseconomies of scale which students easily remember as the advantages and disadvantages of being a larger company, but need a more specific definition....
Long run average cost curves (HL only)
This page simply looks at the concept of the long run in economics and considers why businesses experience firstly economies of scale and then diseconomies of scale as they increases output levels.
Breakeven (HL only)
This lesson focuses on breakeven. Previously this unit of the syllabus included shut down points, which is no longer part of the new syllabus.What is the difference between a firms breakeven point and...
Market power crossword
Let your classes enjoy this revision crossword, perfect for a Friday afternoon or the last week of term. Students can have fun and learn at the same time with this exercise - answers included.
Revision exercise on cost and revenue (HL only)
This page contains a simple revision exercise for your classes to test how many of the definitions they can remember. I have included two printable handouts, the teacher's copy with the correct responses...
Unit 2.11: Costs, revenue and profit review sheet (HL only)
I have included this page, which contains a PDF handout as a simple revision exercise. I find that many IB students get a degree of comfort from these short summary handouts.Review sheet available as...
Unit 2.11: Multiple choice quiz (HL only)
The questions are available as a PDf file at: Quiz questions
Market structures (HL only)
This is a link page to sub-pages, containing lesson plans and learning activities, which provide activities and lesson plans for the sub-unit of 2.12: Market structures. Previously this section would...
Perfect competition (HL only)
This is the beginning of the section on perfect competition. There are a number of paper one questions on this topic, some of which are included on this site. This lesson looks at the conditions of perfect...
Profit in perfect competition (HL only)
Your students will already have learnt to draw demand curves in the first part of the course but they will also need to practise drawing the unique demand curve for a perfectly competitive firms. Something...
Efficiency in perfect competition (HL only)
This page focuses on the concepts of allocative efficiency and looks at why firms in perfect competition will be both productive and allocatively efficient in the long run. Productive efficiency is no...
Perfect competition short answer questions
This page includes a short, relatively straightforward revision exercise that you can distribute to your classes to complete either in class or at home. I generally give this to my classes, have them...
Monopoly (HL only)
This lesson focuses on monopoly structures and specifically the way that a monopoly is able to take advantage of barriers to entry to establish their position as the only firm within the industry. It...
Profit and revenue maximisation in monopoly (HL only)
This lesson focuses again on monopoly structures and asks whether operating a monopoly guarantees that a firm will make abnormal profit. It also considers examples of monopolies that do not prioritise...
Monopoly short answer questions
1. Fill in the following table for a monopoly’s market characteristicsMarket characteristicsMonopolyNumber of firmsOneProduct typeNo close substitutes
A comparison of monopoly and perfect competition? (HL only)
This lesson compares monopoly and perfect competition and asks which offers greater benefits to any society? Much of the response to this will depend on personal opinion but IB students should be aware...
Monopoly and perfect competition short answer questions
1. Fill in the following table in order to compare monopoly and perfect competitionMarket characteristicsMonopolyPerfect CompetitionaLong-run level of profits
Monopolistic competition (HL only)
This lesson focuses on monopolistic competition. Your classes may have been unable to provide an example of a pure perfectly competitive market but will be able to provide several examples of industries...
Monopolistic competition revision questions
1. Complete the following table for monopolistic competition’s market characteristics.Market characteristicsMonopolistic Competition ANumber of firmsB
Oligopoly (HL only)
This lesson focuses on the market structure of oligopoly and the characteristics that this market structure possesses. An effective way to teach this topic is to focus on a local business such as local...
Oligopoly short exercises
1. Fill in the missing wordsAssumptions/FeaturesExplanation__________ number of large firmsSmallIn an oligopoly there are a _________ number of large firms which co-exist with a __________ number of small...
Game theory (HL only)
This lesson focuses on game theory, which many of your students will know from the film 'a beautiful mind' starring Russell Crowe as John Nash. In the film John Nash created the economic concept known...
Game theory questions
1. Firms operating in Oligopoly industries tend keep prices stable. They know that the actions of one firm will impact on the other firms in the industry, in other words they are _______________. Instead...
Unit 2.11: Market structures review sheet (HL only)
I have included this page, which contains a PDF handout as a simple revision exercise. I find that many IB students get a degree of comfort from these short summary handouts.The review sheet is available...
Unit 2.11: Diagram revision
1. Complete the following diagrams:Perfectly competitive firm in the LRPerfectly competitive firm making a loss Perfectly competitive firm making abnormal profitMonopoly firm making a loss
Unit 2.11: Multiple choice quiz (HL only)
Available as a PDF file at: Theory of the firm
Unit 2.12: The market’s inability to achieve equity (HL only)
Is the market able to achieve equity?Is capitalism moral?Lesson time: 70 minutesLesson objectives:Understand whether a free market economy may result in an unequal distribution of income, wealth and opportunity.
Units 1+2 Microeconomics quiz (SL units only)
The multiple choice quiz is available as a PDF file at: Multiple choice quiz SL only