07 Jul Discussion 4
Microeconomics
- What entry barriers exist in (a) the fast-food industry, (b) cable television, (c) the auto industry, (d) illegal drug trade, (e) potato chips, and (f) beauty parlors? (6 points)
- Why do 4,000 new pizzerias open every year? Why do just as many close? (2 points)
- If one gas station reduces its prices, must other gas stations match the price reduction? Why or why not? Explain (2 points)
- How would our consumption of cereal change if cereal manufacturers stopped advertising? Would we be better or worse off? (2 points)
- What makes cable companies natural monopolies? How did cable profits affect the emergence of satellite transmissions? (2 points)
- Why would auto manufacturers resist higher fuel efficiency standards? How would their costs, sales, and profits be affected? (2 points)
- Why are the price and income elasticities for food so low? Explain (2 points)
no more than 500 words please. I you need reading material, please let me know. please try not to use too many sources. These questions come from the understanding of chapter 11-15 in The Economy today ISBN:1259289311
| ISBN: 1259289311 |
| ISBN: 1259289311 |
