1. Why is it that there is only a small number of businesses in the oligopoly industry only? Like 2-3 car makers in US, three large cereal
makers (just a handful that control 80-90% of the market share).
2. Can Monopolistic Competition industries become Oligopolies? Where one or two firms dominate the industry. Is it happening already in some industries? Give examples.
3. How does the oligopoly decide the price, how much to sell and how they will make a profit? Give examples of how and why they do it that way.
4. Identify the following firms in the one of the four industries studied (monopoly, perfect competition, monopolistic competition or Oligopoly): wheat farmer, Starbucks Coffee, Coors, U.S. Post Office, Dentist office, Ford and Ontario Honda Car dealership. Explain why you classify them in each of the categories that you do. Explain in each case.
5. Why would oligopoly be good for consumers? In what ways are the consumers helped in the process? Explain fully.
6. What does the kinked demand curve tell us about competition and does it help the consumer in any way? Explain fully and completely.
7. How is the oligopoly different than a monopoly? Which is the better of the two cases and explain why.
8. What is the shape of the Monopoly's demand curve? How does a monopoly make decisions about (1) price, (2) quantity sold and (3) profit?
9. Why is a cartel like the OPEC so hard to maintain? What is the benefit to stay within the cartel for the members and what is the cost/problems with staying within the cartel?
10. Which of the four industries that we studied in the two modules is the best for the consumers, rank them 1 through 4 (4 = best for consumers and 1 = worst for consumers). What can the government do make the situation better for consumers?