1. The fast food industry is extremely competitive and in some cases close to perfect competition. Identify 2 fast food chains which you feel have almost identical products and pricing and identify the almost identical products that they both sell.
2. Of the 2 that you identified, explain a strategy that one or the other has used in an attempt to gain more control of its respective market and a strategy that you think would work better.
3. Explain in detail how you think trademarks and patents go against the idea of perfect competition.
4. Now explain whether you feel that trademarks and patents are examples of unfair competition or are necessary for technological and social advancement.
5. Assume that you've owned and operated a very successful elite seafood restaurant in a rather small strip mall for several years. A Red Lobster chain seafood restaurant is just about to open across the street from you in another strip mall. Explain how this may affect your total revenue, marginal revenue, marginal cost, and total cost. In other words what, if any, changes would you have to make to what, how, and how much you produce to remain competitive.
6. Delta Airlines advertised a special on air travel from Miami to Denver. The price for round trip airfare was $178. If the average total cost to fly passengers to and from Denver is $250, how does this offer provide any benefit to Delta? How does Delta's opportunity cost of an empty seat change as the date of the flight approaches?