Choose a good or service that is supplied by a small num- ber of oligopoly firms. (Examples range from athletic shoes to aircraft to tooth- paste, or choose a product from the industry list in Table Gather information on the good from public sources (business periodicals, trade mag- azines, or government reports) to answer the following questions.

a. Who are the leading firms and what are their market shares? Compute the concentration ratio for the relevant market.

b. What are the most important dimensions (price, technological innovation, advertising and promotion, and so on) on which firms compete?

c. What has been the history of entry into the market? What kinds of barriers to entry exist?1.

Peter's Restaurant lists separate prices for all the items on its dinner menu. Chez Pierre offers only a fixed-price complete dinner (with patrons choosing from a list of appetizers, entres, and desserts). Casa Pedro offers complete dinners at a fixed price and an la carte menu. Under what different circumstances might these respective pricing schemes make economic sense? Explain briefly. *2. A firm sells two goods in a market consisting of three types of consumers. The table shows the values consumers place on the goods. The unit cost of producing each good is $10. Good Good X Good Y A $8 $20 Consumers B 14 14 20 8 Find the optimal prices for (1) selling the goods separately, (2) pure bundling, and (3) mixed bundling. Which pricing strategy is most profitable?