6. Provide a real-world example of a market that approximates each oligopoly setting, and explain your reasoning.
a. Cournot oligopoly
b. Stackelberg oligopoly
c. Bertrand oligopoly
14. You are the manager of the only firm that specializes in exporting fish products to Japan.Your firm competes against a handful of Japanese firms that enjoy a significant first-mover advantage.Recently, one of your Japanese customers has called to inform you that the Japanese legislature is considering imposing a quota that would reduce the number of pounds of fish products you are permitted to ship to Japan each year.Your first instinct is to call a trade representative of your country to lobby against the import quota.Is following through with your first instinct necessarily the best decision?Explain.
15. The opening statement on the website of the Organization of Petroleum Exporting Countries (OPEC) says, “…OPEC’s eleven numbers are all developing countries whose economies are heavily reliant on oil export revenues.They therefore seek stable oil prices that are fair and reasonable for both producers and consumers of oil.”To achieve this goal, OPEC attempts to coordinate and unify petroleum policies by raising or lowering the collective oil production.However, increased production by Russia, Oman, Mexico, Norway, and other non-OPEC countries has caused the price of crude oil to fall dramatically in recent years.To achieve its goal of stable and fair oil prices, what must OPEC do to maintain the price of oil at its desired level?Do you think this will be easy for OPEC to do?Explain.
16. Semi-Salt Industries began its operation in 1975 and remains the only firm in the world that produces and sell commercial-grade polyglutamate.While virtually anyone with a degree in college Chemistry could replicate the firms formula, due to the relatively high cost, Semi-Salt has decided not to apply for a patent.Despite the absence of patent protection, Semi-Salt has averaged accounting profits of 5.5% on investment since it began producing polyglutamate—a rate comparable to the average rate of interest that large banks paid on deposits over this period.Do you think Semi-Salt is earning monopoly profits?Why?