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In what ways do company investments in research and development create positive externalities?
Provide two examples of goods/services that are classified as private goods/services even though they are provided by a federal government.
Therefore why does the government provide tornado sirens, street lights and light houses but not radio stations (other than PBS stations)?
Why is it true that the four-firm concentration ratio puts more emphasis on one or two very large firms, while the Herfindahl-Hirshman Index puts more emphasis?
Some years ago, two intercity bus companies, Greyhound Lines, Inc. Which definition do you think the bus companies preferred, and why?
Why would you expect that the definitions of markets used by antitrust authorities will become broader or narrower?
Why would a firm choose to use one or more of the anticompetitive practices described in Regulating Anticompetitive Behavior?
How is a four-firm concentration ratio measured? What does a high measure mean about the extent of competition?
How is a Herfindahl-Hirshman Index measured? What does a low measure mean about the extent of competition?
What is a minimum resale price maintenance agreement? How might it reduce competition and when might it be acceptable?
What is predatory pricing? How might it reduce competition, and why might it be difficult to tell when it should be illegal?
If public utilities are a natural monopoly, what would be the danger in splitting them up into a number of separate competing firms?
Why does regulatory capture reduce the persuasiveness of the case for regulating industries for the benefit of consumers?
What would be evidence of serious competition between firms in an industry? Can you identify two highly competitive industries?
If you were developing a product for a market with significant barriers to entry, how would you try to get your product into the market successfully?
Today, there is usually only one and it runs as a subsidized, regulated monopoly. What do you suppose caused the change?
Why are urban areas willing to subsidize urban transit systems? Does the argument for subsidies make sense to you?
Deregulation, like all changes in government policy, always has pluses and minuses. What do you think some of the minuses might be for airline deregulation?
If so, why does government not do that? If not, how can regulation stay ahead of rogue businesses that push the limits of the system until it breaks?
Consider two approaches to reducing emissions of CO2 into the environment from manufacturing. Of the two approaches, which is the command-and-control policy?
More than forty years later, OPEC still exists. Why do you think OPEC has been able to beat the odds and continue to collude?
What if each firm produces a somewhat different product? Explain your reasoning.
Perhaps a better question is, What is the right amount of variety? Can there be too many varieties of shoes, for example?
What stops oligopolists from acting together as a monopolist and earning the highest possible level of profits?
Why does each individual in a prisoner’s dilemma benefit more from cooperation or from pursuing self interest? Explain briefly.