1. Explain why the definition of the relevant market is important when examining antitrust issues.
2. Two assumptions of the model of perfect competition that only hold approximately in the real world are that (a) consumers have perfect information about all prices in the market, and (b) there are no transaction costs. How do violations of these two assumptions give most real-world firms at least some market power?
3. Explain how the Internet might help lead to legal, identical prices set by firms in an industry.
4. Two firms selling in the same markets are too small to have much market power. They find that coordinating and perhaps limiting their respective production might very well increase the market price. How can they make such a program perfectly legal?