1. How does product differentiation relax price competition? Illustrate with examples. 2. How does the number of firms in the industry affect the equilibrium of quantity competition? 3. When firms choose first their capacity of production and next the price of their product, this two-stage competition sometimes looks like (one-stage) Cournot competition. Under which conditions? 4. Using a unified model of horizontal product differentiation, one comes to the conclusion that price competition is fiercer than quantity competition. Explain the intuition behind this result. 5. Define the concepts of strategic complements and strategic substitutes. Illustrate with examples. 6. What characteristics of a specific industry will you look for to determine whether this industry is better represented by price competition or by quantity competition? Discuss