1. Why would a firm prefer to be a monopolist? Why would it prefer to be a monopsonist? Explain.

2. Consider three different situations regarding factor mobility: i) mobility within an industry, ii) mobility across industries, iii) mobility between countries. In which of these situations are productive factors likely to be mostmobile?In which of these situations are factors likely to be leastmobile? What does this imply about countries' ability to utilize comparative advantage in organizing production and trade? Explain.

3. 136 countries recently signed an agreement regarding taxation. What was this agreement and what kind of companies does it target?