Peer Review

Monopoly gas station

Material Detail page

Reviewed:: May 28, 2020 by Business

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Ratings

Overall Rating:

Content Quality:

Effectiveness:

Ease of Use:

Overview:

Students predict then calculate and graph profit-maximizing the price for an isolated, desert monopoly gas station. Then using data on demand and cost, they find the profit maximizing price and graph the result.

Type of Material:

Assignment

Recommended Uses:

Homework assignment for in-class discussion. It could be assignment as a group assignment or individual online assignment.

Technical Requirements:

Browser--documents are downloadable pdf format.

Identify Major Learning Goals:

Students will apply price maximization concepts from a microeconomics course related to price setting strategies.

To investigate the impact of price on demand.

To identify pricing strategies appropriate in a monopolistic environment.

To analyze and apply profit strategies related to price and demand.

Target Student Population:

College Lower Division, College Upper Division

Prerequisite Knowledge or Skills:

This would be a nice supplemental activity for a principles of marketing course chapter/discussion on pricing strategies.

Content Quality

Rating:

Strengths:

The site is clean and well-designed. The information is clearly explained. It provides a nice in-class or homework activity that should quickly illustrate pricing strategy.

Assignment materials are easy to follow, of high quality, and reinforces the concept of demand curves and profit maximization strategies well.

Concerns:

May not be as simple to adapt to an online learning environment. Instructor would need to determine what format would work best based on course learning goals and student needs.

Potential Effectiveness as a Teaching Tool

Rating:

Strengths:

This material is a highly effective teaching tool to reinforce concepts learned related to monopoly pricing. It draws on previously learned concepts, asks students to apply those concepts in a real-life context of owning a gas station, and then asks them to calculate their chosen prices using the MR=MC rule.

The site provides both handouts for activties, as well as simple exercise steps/process. The teaching notes with possible questions should provide a beginning for instructors to futher develop their own use and applications.

Ease of Use for Both Students and Faculty

Rating:
Strengths:: The worksheet has clear instructions and the scenario seems like it would be engaging to students. It appears to be accessible to students with the simple black and white format.
Concerns:: The pdf lettering does seem fuzzy and could make it difficult to read some of the wording when printed.

Other Issues and Comments:: The instructor could provide any background information prior to the exercise, as well as develop specific learning objectives, relative to their individual course/learning unit.
Creative Commons: