1. How can compare and contrast your local utility company with a local farmer. 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 (2) markets. Compare and contrast the following models: Cournot model and Bertrand model. Explain 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. Use price leadership, barriers to entry and exit, strategic interdependence, and the characteristics of the firm in your answer.