book Sayre (CDN), Principles of Microeconomics, 10e Sayre (CDN), Principles of Microeconomics, 10e John Sayre, 10ee

Perfect Competition Read two articles: - Three Myths of Antitrust: Part 3 - Perfect Competition: Examples and How it Works 1. After reading the argument in the articles above, decide if you agree or disagree with the theory of perfect competition. Choose 'Pro'' or 'Con'' as your subject heading in your discussion posting. - If you chose 'Pro' and agree with the theory, post at least 2 paragraphs explaining why you agree with the theory. - If you chose 'Con' and do not agree with the theory, post at least 2 paragraphs explaining why you think this way.

2. As well, examine the publisher of this article, Capitalism Magazine. What is the mandate of this e-magazine? Do you think it influences what is presented in the publication? That is, is the article skewed in its thinking or not?

3. Once there are a number of postings by fellow students, consider both sides of the argument and respond to two posts. Has your thinking changed? Why or why not?

Product Differentiation

Product differentiation is the main difference between perfect competition and monopolistic competition.

1) Discuss what product differentiation is and provide an example (and explanation) of a product or service that operates in a monopolistic competition environment.

2) What differentiation strategy has been chosen for the product or service you selected? What distinguishes the product or service from other similar ones available in the market? Give examples.

3) Why do companies try to differentiate their products?

Government Intervention Debate

Read section 10.6 "Controlling the Monopolist" in your textbook and review the ways that governments can change the behaviour of monopolies.

Post a discussion that takes the viewpoint of either: 1) for government intervention, or 2) against government intervention.

As you are formulating your discussion posting ensure that you present your thoughts on government: 1) setting prices; 2) imposing special taxes; and 3) creating the Competition Act. Also, refer to the fact that companies may be private, public or nationalized. Illustrate your point of view with real examples, graphs, and/or current news from online sources.