Unit 6: Homework
Directions
Remember, homework is your opportunity to practice using your newly developed skills and knowledge. In order to get the maximum benefit out of this assignment, you are to work alone to create / identify the solutions to the following questions. The text should be your primary source of information throughout this course.
Consolidate your response into one file and submit it to your instructor no later than Sunday at Midnight Central Time. Your file should be named with your first and last name followed by the unit number, i.e. “Tom Jones 1” or “Mary Brown 1”. Your file should be in Microsoft Word (*.doc) format. Other formats will need instructor consent prior to submitting your work!
Submit your assignment by attaching it in the Submission Link, by clicking on the Submission Link tab at the top of the course frame and choosing the current unit assignment. Do not paste it into the Submission Link. Do not email your assignment.
This Unit’s Homework
Ending each chapter and appendix in the text are the chapter summary, terms and concepts, and study questions. You are to review the chapter summary and the terms and concepts and then prepare answers to the following study questions.
Chapter 8: # 2, 8, 9, 10
#2. Discuss the major barriers to entry into an industry. Explain how each barrier can foster either monopoly or oligopoly. Which barriers, if any, do you feel give rise to monopoly that is socially justifiable? LO1
#8. U.S. pharmaceutical companies charge different prices for prescription drugs to buyers in different nations, depending on elasticity of demand and government-imposed price ceilings. Explain why these companies, for profit reasons, oppose laws allowing reimportation of their drugs back into the United States. LO4
#9. How was De Beers able to control the world price of diamonds over the past several decades even though it produced only 45 percent of the diamonds? What factors ended its monopoly? What is its new profit strategy? LO5
#10. Under what law and on what basis did the federal district court find Microsoft guilty of violating the Sherman Act? What was the initial district court’s remedy? How did Microsoft fare with its appeal to the court of appeals? What was the final negotiated remedy? LO5