1) In certain industries, firms buy their most important inputs in markets that are close to perfectly competitive and sell their output in imperfectly competitive markets. Cite as many examples as you can of these types of businesses. Explain why the profits of such firms tend to increase when there is an excess supply of the inputs they use in their production process.
2) In the following list are a number of well-known companies and the products that they sell. Which of the four types of markets (perfect competition, monopoly, monopolistic competition, and oligopoly) best characterizes the markets in which they compete? Explain why.
McDonald’s hamburgers
ExxonMobil-gasoline
Dell-personal computers
Heinz-Ketchup
Procter & Gamble – disposable diapers
Starbucks –gourmet coffee
Domino’s – pizza
Intel – computer chip for the PC
3) In 2002, Philip Morris sold its Miller Brewing Division to South African Breweries. a. What impact do you think this transaction had on the market structure of the beer industry in the United States? In world markets? Explain. b. Using the economic concepts presented in chapters 7,8 and 9, discuss possible reasons why both parties agreed to this transaction.
Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.
[order_calculator]