1. The duopolist dilemma is that each firm would make more profit if both picked the _______ price, but both firms pick the _____ price. Explain why they do this.

2. What are the characteristics of an oligopoly? Using the concept of duopoly and the price leadership model, discuss demand and pricing strategies in an oligopolistic market structure.

3. Most of the products you buy at a grocery store come from what type of competitive market? Why do you think this is so? Note; the question is not about grocery stores, but the products you find there. Think about a few examples of product you regularly purchase, like canned vegetables, breakfast cereal, toothpaste, etc.