1. Consider monopolies such as local water or electric public utilities that are regulated by a government entity, often called a Public Utilities Commission. What are the ways in which these companies are regulated? What are the reasons for granting monopoly power to the company? What are the advantages and disadvantages of doing so? 2. Think about local businesses that fit the definition of monopolistic competition, such as barber shops, nail salons, restaurants, or gardeners. Then, reflect on the following: How do these types of businesses compete? When you decide to select one company versus another, how important are price versus non-price factors? What price differentiation are you willing to tolerate before shifting from the preferred supplier to a competing one?3. See photo for 3rd question

Use the following Payoff Matrix for Company A and Company B, the only two companies that produce widgets, to answer the following questions. Your response should be at least 150~225 words (23 paragraphs) in length. Be sure to reference at least one scholarly source to support your answer. a. What is the expected outcome of this one-time (not repeated) game? Defend your answer. b. How might your answer change if the game is repeated indefinitely? c. To what extent does this example illustrate why firms in some concentrated oligopolies exhibit cooperative or collusive behavior even though they don't explicitly collude? Company B Lowers Price Company B Does Not Lower Price Company A Lowers Price Company B's Payoff: $100 Company B's Payoff: $100 Company A's Payoff: 5100 Company A's Payoff: $1000 Company A Does Not Lower Price Company B's Payoff: $1000 Company B's Payoff: $500 Com- an A's Pa off: $100 Com- an A's Pa off: $500