- “Unlike a perfect competitor, a profit-maximizing monopolist produces at an output rate at which marginal revenue exceeds marginal cost.” Valuate this statement and explain why it is correct or incorrect.
- Explain the differences in advertising approaches that firms should take depending in whether they are in markets that constitute perfect competition, monopolistic competition or oligopolistic competition.
- Explain how the prisoners’ dilemma can be used to examine pricing strategies in an oligopoly.
- Although there are only a few major cell phone service providers in the US, explain why this oligopoly of today is much different than the telecommunications competition landscape that existed when there were only a few telephone companies in the 1980s and before.
Sample Solution
