Managerial Economics and Strategy, 2/e

Questions

All exercises are available on MyEconLab; * $=$ [&|eq|&] answer at the back of this book; C $=$ [&|eq|&] use of calculus may be necessary.

1. Perfect Competition  

1. 1.1 A large city has nearly 500 restaurants, with new ones entering regularly as the population grows. The city decides to limit the number of restaurant licenses to 500. Which characteristics of this market are consistent with perfect competition and which are not? Is this restaurant market likely to be nearly perfectly competitive? Why?

2. *1.2 Why would high transaction costs or imperfect information tend to prevent price-taking behavior?

2. Competition in the Short Run  

1. 2.1 Mercedes-Benz of San Francisco states on its Web page that the same family has owned and operated ...