1. (Product Differentiation) One important way monopolistic competitors differentiate their products is by location. Re- view John Campbell's article,"Time to Shop:The Geography of Retailing," from the Federal Reserve Bank of Boston's Regional Review at https://www.bos.frb.org/ economic/nerr/rr1996/summer/rgrv96_3.htm. What locational strategies are retailers using? What does the theory of monopolistic competition predict about the success of such strategies in the short run and in the long run?
2. (OPEC) OPEC is the economist's favorite cartel to study. That is partly because it had such a spectacular short-run success and partly because oligopoly theory could be used to predict how OPEC pricing actually evolved.Take a look at the U.S. Department of Energy's OPEC Fact Sheet at https://www.eia.doe.gov/emeu/cabs/opec.html. What are some recent developments in petroleum pricing? How relevant are the factors listed in this chapter as affecting the difficulty of maintaining a cartel?