1. Explain the concept of industry concentration and concentration ratios.
2. What is the dilemma that affects pricing decisions for firms in an oligopoly (consider the Prisoners’ Dilemma?)
3. How are pricing decisions affected by the kinked demand curve facing oligopolies?
4. What are cartels? What are the objectives of cartels?
5. What are the objectives of the competition act in Canada?
6. Explain the marginal revenue product (MRP) for labour.
7. Explain how wage rates are determined.
8. Explain why there might be a wage difference between two jobs. What could reduce the wage differential? What barriers might prevent the differential from being reduced?
9. Explain how demand for labour is a derived demand.
10. What is are positive and negative externalities. Explain using examples for each.
11. Use a diagram to explain the impact on a market when there are marginal social costs from negative externalities or marginal social benefits from positive externalities.
12. Give an example of a free rider. What is the solution to the problem of free riders?
13. Explain a carbon tax and a cap-and-trade system. What are the pros and cons of each method of carbon pricing?
14. Use an example to explain how an efficient market may be a market with less equity.
15. What is the process of creative destruction? Explain using examples.
16. What happens if we regulate “price gouging” to keep the price of emergency supplies from rising during a disaster?
17. What is the purpose of price discrimination? Describe examples. What does this have to do with elasticity?
18. Give an example of a natural monopoly. Why are they established? Why do they need to be regulated?