Review: Ch. 11, 12
#2. Firms in a concentrated industry decide to compete as rivals.
– What type of rivalry is best for consumers
– What type might be harmful
#4. Mattresses come in only a small number of sizes. How does this industry standard affect consumers? Better or worse off with standard?
#8 a) is there a dominant strategy b) is there a Nash equilibrium c) would collusion alter the outcome
#16 T/F. If an industry has only 4 firms, then CR4 reveals as much about industry concentration as HHI
#1. Why might a firm purposely produce goods that are of lower quality than its competitors?
#5. If the market for college education were perfectly competitive, how would it be different from what it is now?
#9. If a MC firm is able to patent its production process, but not its product, can it become a monopolist?
#10. Graph a MC firm in long-run equilibrium. How would its output level change if it had no market power?