Expert answer:buisiness discussion – one paragraph each question
Expert answer:discussion
business_discussion.doc
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1. Major new markets are being established by fast growth of the major emerging economies and
by advertising as the new technologies and information systems spread the potential to the
most remote parts of the world. As resource constraints become increasingly tight, nation states
are maneuvering to establish controls over them and to negotiate reliable access to scarce
resource supplies. How do the old microeconomic models fit into this new framework and can
they help to explain market incentives and market processes in the new international economy
that eclipse national boundaries?
2. How much interference we want in our markets has been much debated in the press and
political debate over the last decade or two. A basic question is, is the welfare gain enough to
offset the imperfections of public policy processes?
3. How do unions fit into the new international framework?
4. When is the last time you can remember choosing one product over another because of
advertising?
5. What role does advertising play in influencing consumption in monopolistic competition? Does
the impact of advertising allow for some price leverage by firms in this market structure? Why
or why not?
6. Is the United States truly an economy that promotes competition? Think about the markets
where major oligopolies exist, for instance soft drinks/fast foods and automobile manufacturing,
is there really a free market place or do oligopolies/major corporations dominate our economy?
7. How would the reversal of net neutrality affect competitiveness over the internet?
8. Why is the government so quick to regulate monopolies and potential monopolies? What are
the major concerns that arise from this market structure?
9. Identify markets, where monopolies may beneficial, and let’s explain why this is the case
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