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QUESTION 1:Discuss, using examples and academic references, the statement that perfect competition gives an optimal allocation of resources but that the existence of scale economies may make perfect competition impossible. (1000 words).
QUESTION 2:Compare and contrast the ‘five forces’ analysis of competitive structure with the S-C-P (structure-conduct-performance) models of perfect competition, monopoly and oligopoly. Pay particular attention to the aims of the different approaches and their overlaps. ( 1000 words)
QUESTION 3:How would you explain an industry with monopolistic competition using a five forces analysis? (500 words)
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Cypress River Landscape Supply is a larege wholesale supplier of landscaping materials in Gerogia. Cypress River's sales vary seasonally; sales tend to be higher in the spring months than in other months.
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What does the analysis of the 'hold up' problem contribute to the explanation of the size and scope of firms?
"I see that your shoes are ‘buy one, get one free - limit one free pair per customer.' Will you sell me one pair for half-price" The clerk answered, "I can't do that." When the customer started to leave the store, the clerk hastily offered,
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