1. Why would a large corporation pay millions of dollars of severance pay to an executive who has been a complete failure?

2. When an economic project (building a road, creating a car company, etc) requires far more money than any individual can/will invest, what are some of the things that can facilitate or impede the pooling of money from others to finance the project?

3. Explain and interpret the quote from Bastiat that opens the chapter.

4. What are the differences between a monopoly and a cartel?

5. What have been governmental responses to monopolies?

6. What are the "psychic benefits of stockholder participation"?

Key Points: make sure you know/understand how prices differ when the industry is competitive versus a monopoly and how the government and markets respond.