Firms in Competitive Markets
Review the following questions and prepare a four to five page report on any three of the following issues: 1. Firms in Competitive Markets The official “Incredible Edible Egg” Web Site: Go to: http://www.aeb.org/ (Retrieved May 17, 2010). This website is sponsored by the American Egg Board. Among other things, the site is clearly an advertisement for the egg industry. Have you ever seen or do you expect to see advertising for individual egg producers? What characteristics of the good make the market competitive? 2. Monopoly Microsoft: Go to http://www.debeers.com/ (Retrieved May 17, 2010). Does a monopoly firm produce this product? What characteristics of the good make the market monopolistic? Explain. 3. Monopolistic Competition Luxury Watch Industry: Go to http://images.businessweek.com/ss/06/05/watches/source/1.htm (Retrieved May 17, 2010). This is an interesting article on luxury watches. Click on the slide show in the upper right window (check out the prices!). Are these three firms participating in a monopolistically competitive market? What characteristics of the good make the market monopolistically competitive? Explain. 4. Oligopoly The OPEC Oil Cartel Go to www.opec.org (Retrieved May 17, 2010). What are the organization’s stated goals, which countries are members, and when was it founded? Is it normal for them to be successful in keeping oil prices high, or have they faced difficulties in keeping the cartel united in the past? 5. Antitrust Enforcement and the Consumer The following is the to the United States Department of Justice’s view of its role in antitrust enforcement. Retrieved May 17, 2010: http://www.usdoj.gov/atr/overview.html. Do you think the U. S. Government is doing enough in this area? Be specific citing examples. Case Assignment Expectations: Use concepts from the modular background readings as well as any good quality resources you can find from the cyberlibrary or other internet search engines. Pleas be sure to cite all sources within the text and provide a reference list at the end of the paper. Length: 4-5 pages double spaced and typed. The following items will be assessed in particular: Your ability to understand the differences between perfect and imperfect competition. Some in-text references to the modular background material (APA formatting not required). The essay should address each element of the assignment. Remember to support your answers with solid references including the case readings.