What two oligopoly models might offer an explanation

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1. When an automaker begins offering low cost financing or rebates, others tend to do the same. What two oligopoly models might offer an explanation of this behavior?

2. Fast-food restaurants tend to cluster together. That is, on one corner, there might be four similar fast-food restaurants. How can this be explained using a location game theory model?

3. Would it ever make sense for a firm to charge a price at or below the cost of the product?

4. McDonald's charges a higher price for a Big Mac in New York City than it does in a small town in Iowa. Is this an example of third-degree price discrimination? Explain.

5. What additional sources of risk come from international investments?

Reference no: EM13737842

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