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Topic: Competition and market structure 

Economics

 Standard 4.  Understands basic features of market structures and exchanges
  Level II (Grade 3-5)
   Benchmark 1.Knows that competitive markets are those with many buyers and sellers, where no one person or firm controls prices or the number of products for sale
    Knowledge/skill statements
     1.Knows that a competitive market has many buyers and sellers
     2.Knows that in a competitive market, no one person or firm controls prices
     3.Knows that in a competitive market, no one person or firm controls the number of products for sale
   Benchmark 6.Understands how active competition among sellers results in lower prices and costs, higher product quality, and better customer service
    Knowledge/skill statements
     1.Understands how active competition among sellers results in lower prices and costs
     2.Understands how active competition among sellers results in higher product quality
     3.Understands how active competition among sellers results in better customer service
  Level III (Grade 6-8)
   Benchmark 1.Understands that not all competition is on the basis of price for identical products and that non-price competition includes style and quality differences, advertising, customer services, and credit policies
    Knowledge/skill statements
     1.Understands that not all competition for identical products is based on price
     2.Knows that non-price competition includes style and quality differences
     3.Knows that non-price competition includes advertising
     4.Knows that non-price competition includes customer services
     5.Knows that non-price competition includes credit policies
   Benchmark 2.Understands how competition among buyers of a product results in higher prices for the product
    Knowledge/skill statements
     1.Understands that buyers sometimes compete to purchase products
     2.Understands how price of products is affected by competition among buyers
   Benchmark 3.Understands that the United States government uses laws and regulations to maintain competition, but sometimes the government reduces competition unintentionally or in response to special interest groups
    Knowledge/skill statements
     1.Understands that the United States government uses laws and regulations to maintain competition
     2.Understands that sometimes the U.S. government reduces competition unintentionally
     3.Understands that the U.S. government sometimes reduces competition in response to special interest groups
  Level IV (Grade 9-12)
   Benchmark 2.Knows that collusion among buyers or sellers reduces the level of competition in a market and is more difficult in markets with large numbers of buyers and sellers
    Knowledge/skill statements
     1.Knows that collusion among buyers or sellers reduces the level of competition in a market
     2.Knows that collusion among buyers or sellers is more difficult in markets with large numbers of buyers and sellers
   Benchmark 3.Understands that in the long run the level of competition in an industry is determined largely by how difficult and expensive it is for new firms to enter the market and by consumers’ information about the availability, price, and quantity of substitute goods and services
    Knowledge/skill statements
     1.Understands that a factor influencing the level of competition in an industry is how difficult and expensive it is for new firms to enter the market
     2.Understands that a factor influencing the level of competition in an industry is consumers’ information about the availability of substitute goods and services
     3.Understands that a factor influencing the level of competition in an industry is consumers’ information about the price of substitute goods and services
     4.Understands that a factor influencing the level of competition in an industry is consumers’ information about the quantity of substitute goods and services
   Benchmark 4.Understands that the introduction of new products and production methods by entrepreneurs is an important form of competition and source of technological progress and economic growth
    Knowledge/skill statements
     1.Understands that the introduction of new products and production methods by entrepreneurs is an important form of competition
     2.Understands that the introduction of new products and production methods by entrepreneurs is a source of technological progress
     3.Understands that the introduction of new products and production methods by entrepreneurs is a source of economic growth
   Benchmark 6.Understands that a natural monopoly exists when it is cheaper for one supplier to produce all of the output in a market than for two or more producers to share the output (e.g., electric companies)
    Knowledge/skill statements
     1.Understands what a natural monopoly is
     2.Knows the conditions required for a natural monopoly to form
     3.Knows that electric companies are an example of a natural monopoly
   Benchmark 7.Understands that public service commissions typically regulate natural monopolies because people cannot rely on competition to control price and service levels in these cases
    Knowledge/skill statements
     1.Knows that public service commissions typically regulate natural monopolies
     2.Understands that competition cannot control prices and service levels when natural monopolies are present