Part IV: Firms and Factors Markets
6)When is price discrimination likely to increase total surplus?
7)When a firm in an oligopoly reduces output, who gets most of the gains from the reduction: the firm that reduces output or the other firms in the industry?
8)Why do we classify McDonald’s and Burger King as monopolistic competitors rather than as pure competitors? Isn’t a hamburger just a hamburger?
9)From a profit making perspective, why is employer
discrimination just plain dumb?