Econ 203 Discussion (Professor Anthony ONLY)

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Read the articles:

 

1) The Kraft-Heinz merger & the monopoly on food

 

http://www.upi.com/Top_News/Analysis/2015/03/26/The-Kraft-Heinz-merger-the-monopoly-on-food/4591427324041/

 

by By Frank J. Maduri – March 26, 2015

 

If this link does not work, your instructor can provide a pdf. file with this article.

 

2)      Crovitz: TV’s Unnatural Monopolies.

 

If this link does not work, your instructor can provide a pdf. file with this article. http://online.wsj.com/article/SB10001424127887324139404579016850166003972.html

 

 

 

3)      Is Google a Monopoly? Wrong Question

 

If this link does not work, your instructor can provide a pdf. file with this article.

 

http://www.bloomberg.com/news/2012-07-08/is-google-a-monopoly-wrong-question.html

 

 

 

4)      Drug Patents and Generics

 

If this link does not work, your instructor can provide a pdf. file with this article.

 

http://www.news-medical.net/health/Drug-Patents-and-Generics.aspx

 

 

 

You are expected to make your own contribution in a main topic as well as respond with value-added comments to at least two of your classmates. You are encouraged to respond to other students as well as to your instructor.

 

Choose one question to answer:

 

1. Explain why a monopolist must lower its quantity relative to a competitive market to maximize its profits.

 

2. Why does the government grant patents to companies that research new drugs?

 

3. What would happen if the government chooses to increase the number of years that a firm can enjoy patent protection from 20 years to 25 years?

 

4. You own a local sub shop in a college town. You primarily serve two groups of people: local residents (both students and other local residents) and visitors to your town. Devise a price discrimination strategy that will increase your revenues compared to a single-pricing strategy.

 

5. Suppose that you own a golf course that is part of a Florida resort. You primarily serve two groups of people: local residents and tourists. Devise a price discrimination strategy that will increase your revenues compared to a single-pricing strategy.

 

6. If you purchased a new model of a digital camera right after it is released you will likely pay more than if you purchase it six months after release. Why is this example of price discrimination on the part of the firm?

 

You must start a thread before you can read and reply to other threads

 

 

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