Discussion Questions :
1. Give an example of an opportunity cost that an accountant might not count as a cost. Why would the accountant ignore this cost?
2. Explain the difference between a firm's revenue and its profit. Which do firms maximize?
3. Give an example of a government-created monopoly. Is creating this monopoly necessarily bad public policy? Explain.
4. How might advertising reduce economic well-being? How might advertising increase economic well-being?
5. What is the prisoners' dilemma, and what does it have to do with oligopoly?