1. Compare and contrast your local utility company with a local farmer (soy bean, corn, cotton, etc.). Explain why does your utility company always operate with price is greater than marginal cost whereby the farmer attempts to produce where price equals marginal cost?
2. Explain the implications on the dead weight loss on these two markets. Compare and contrast the following models: Bertrand model and Cournot model. Discuss which model you feel is best for producers to operate under.
3. Explain what the airlines which operate in an oligopoly would have to do to justify a higher ticket price. Barriers to entry and exit, strategic interdependence, and the characteristics of the firm in your answer by using the price leadership.