Monopolies and Oligopolies

What are some similarities and differences between monopolies and oligopolies? How would you classify Microsoft? How would you classify the power industry in your area? Explain your reasoning.

Common, public, private goods and natural monopolies

Identify similarities and differences between common goods, public goods, private goods, and natural monopolies. Provide an example of each type of good and justify your answers. Discuss possible positive or negative externalities associated with each example. How do the externalities affect the economy?

Questions on Economic Acts

1. Laws governing business practices made which of the following illegal? a. The Clayton Antitrust Act declared horizontal mergers illegal. b. The Sherman Antitrust Act made price discrimination, tie-in contracts, and interlocking directorships illegal when their effect was to lessen competition. c. The Celler-Kefauver Act of 1950 made it illegal for firms to use “unfair or deceptive acts or practices.” d. The Federal Trade Commission Act made vertical mergers illegal. 2. Microsoft Corporation in its antitrust case was accused of: a. illegally trying to take over its competitors through hostile takeovers. b. Tying other Microsoft products to its Windows opera... click for more

Economic Efficiency

Chapter 2 # 4 Lawns produce no crops but occupy more land (25 million acres) in the U.S. than any single crop, such as corn. This means that the United States is operating inefficiently and hence is at a point inside the production possibility curve. Right? If not, what does it mean? Chapter 2 # 5 Groucho Marx is reported to have said, “The secret of success is honesty and fair dealing. If you can fake those, you’ve got it made.” What would likely happen to society’s production possibility curve if everyone could fake honesty? Why? (Hint: Remember that society’s production possibility curve reflects more than just technical relationships.) Chapter 30 # 3 The government has j... click for more

Supply and Demand

Describe two factors that affect labor supply and two factors that affect labor demand. Using economic principles, describe how changes in the labor market have affected you or someone you know.