1) One of the things we see with the monopolistic competitor is that they can take actions to increase or decrease their demand curve. They would never want to decrease their demand, but they certainly could.

describe a scenario that highlights each of the factors that differentiate goods. The factors are listed below:

• Physical Differences
• Location from which a good is sold
• Intangible Aspects
• Perceptions

2) The oligopolist has applications that go outside what we may consider to be Economics. develop a situation that demonstrates prisoner's dilemma. (It should not be the standard Bonnie and Clyde case)

• Explain the situation
• What are the payouts if both parties cooperate or collude?
• What are the payouts if only one party cooperates?
• What are the payouts if both parties cheat or compete?
• How does this impact:
  • the parties involved in the game?
  • society as a whole?