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Why would auto manufacturers resist exhaust control devices? How would their costs, sales, and profits be affected?
Does anyone have an incentive to maintain auto-exhaust control devices in good working order? How can we ensure that they will be maintained?
Why would local monopolies ever confront effective competition? Does profit regulation inhibit or accelerate would-be competition?
Why is there resistance to (a) local phone companies providing video and data services and (b) mergers of local cable and telephone companies?
What are the economic costs of the externalities caused by air toxins? Or beach closings? How would you measure their value?
Should we try to eliminate all pollution? What economic considerations might favor permitting some pollution?
Suppose we established a $10,000 fine for water pollution. Would some companies still find that polluting was economical? Under what conditions?
Should the United States have signed the Kyoto treaty? What are the arguments for and against U.S. participation?
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?