Task: Competition and Market Power
Problem 1. Firms in Competitive Markets
The official "Incredible Edible Egg" Web Sit https://www.aeb.org/ is sponsored by the American Egg Board. Among other things, the site is clearly an advertisement for the egg industry. Do you expect to see advertising for individual egg producers? What characteristics of the good make the market competitive?
Problem 2. Monopoly
Does a monopoly firm produce this product? What characteristics of the good make the market monopolistic? Explain.
Problem 3. Monopolistic Competition
The Fast Food Industry such as McDonalds, Burger King, and Wendys. Are these three firms participating in a monopolistically competitive market? What characteristics of the good make the market monopolistically competitive? Explain.