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Is single ownership of a whole industry necessary to exercise monopoly power? How might an industry with many firms achieve the same result?
What industries do you regard as being highly competitive? Can you identify any barriers to entry in those industries?
Why wouldn't producers necessarily want to produce output at the lowest average cost? Under what conditions would they end up doing so?
Why would anyone want to enter a profitable industry knowing that profits would eventually be eliminated by competition?
If a perfectly competitive firm raises its price above the prevailing market rate, how much of its sales might it lose? Why?
What was the opportunity cost of Mr. Fujishige's farm? Is society better off with another Disney theme park? Explain.
Why wouldn't a profit-maximizing firm want to produce at the rate of output that minimizes average total cost?
Given the inevitable limit on airplane landings, how should available airport slots be allocated? How would market outcomes be altered?
How would our consumption of cereal change if cereal manufacturers stopped advertising? Would we be better or worse off?
Why is the mix of output produced in competitive markets more desirable than that in monopolistically competitive markets?
How do new product offerings like breakfast sandwiches affect Starbucks sales and profits?
What reasons might Northwest Airlines have for not matching its rivals’ fare increases?
Why might OPEC members have a difficult time setting and maintaining a monopoly price?
How many bookstores are on or near your campus? If there were more bookstores, how would the price of new and used books be affected?
What similarities exist between the AT&T and Microsoft antitrust cases? What should the government do?
What would have happened to iPod prices and features if Apple had not faced competition from iPod clones?
What was the nature of the damages to Polaroid? How could you compute them? (The court awarded Polaroid a record $900 million!)
Why don't monopolists try to establish the highest price possible, as many people allege? What would happen to sales? To profits?
What does the demand for enrollments in your college look like? What is on the axes? Is the demand price-elastic? Income-elastic?
How does XM Satellite deter nonsubscribers from listening to its transmissions? Does this make radio programming a private good or a public good?
The government now spends over $500 billion a year on Social Security benefits. Why don't we leave it to individuals to save for their own retirement?
Why might Fourth of July fireworks be considered a public good? Who should pay for them? What about airport security?
Could local fire departments be privately operated, with their services sold directly to customers? What problems would be involved in such a system?
Why should taxpayers subsidize public colleges and universities? What external benefits are generated by higher education?
What would happen in the apple market if the government set a minimum price of $2.00 per apple? What might motivate such a policy?