Question 1. Using the demand and cost curves of an individual firm in oligopoly, demonstrate what effects of each of the following are:
a. the Clean Air Act
b. The Nutrition and Labeling Act
c. A ban on smoking inside the workplace
d. A sales tax
Question 2. Kodak has developed an important brand name through its advertising, innovation and product quality and service. Suppose Kodak sets up a network of exclusive dealerships, and one of the dealers decides to carry Fuji & Mitsubishi as well as Kodak products. If Kodak terminates the dealership, is it acting in a pro- or anti – competitive manner?
Question 3. Which of the three types of government policies- antitrust, social regulation and economic regulation – is the basis for each of the following & why?
a. Beautician education standards
b. Certified Public Accounting requirements
c. Liquor licensing
d. Justice Department guidelines
e. the Clean Air Act
f. The Nutrition and Labeling Act
Question 4. Discuss the claim that social regulation is unnecessary. Does the claim depend on whether the industry is perfectly competitive or is an oligopoly?
Question 5. Using cost curves and demand and marginal-revenue curves, illustrate why P2P (peer-to-peer) is a problem for firms ant create and distribute intellectual property.