1. Pick one of the scenarios below, and answer the questions fully in your initial post:
   1. Scenario A: Provide a real-world example of a market that approximates each oligopoly setting, and explain your reasoning for the following:
      1. Cournot oligopoly
      2. Stackelberg oligopoly
      3. Bertrand oligopoly
   2. Scenario B: Determine whether each of the following scenarios best reflects features of Sweezy, Cournot, Stackelberg, or Bertrand oligopoly, and why?
      1. Neither manager expects her own output decision to impact the other manager's output decision.
      2. Each manager charges a price that is a best response to the rival's price.
      3. The manager of one firm gets to observe the output of the rival firm before making its own output decision.
      4. Managers perceive that rival will match price reductions but not price increases.
   3. Scenario C: You manage a company that competes in an industry that is comprised of five equal-sized firms. A recent industry report indicates that a tariff on foreign imports would boost industry profits by $30 million, and that it would only take $5 million in expenditures on (legal) lobbying activities to induce Congress to implement such a tariff.
      1. Discuss your strategy for improving your company's profits.
   4. Scenario D: At a time when demand for ready-to-eat cereal was stagnant, a spokesperson for the cereal maker Kellogg's was quoted as saying, "...for the past several years, our individual company growth has come out of the other fellow's hide." Kellogg's has been producing cereal since 1906 and continues to implement strategies that make it a leader in the cereal industry. Suppose that when Kellogg's and its largest rival advertise, each company earns $0 in profits. When neither company advertises, each company earns profits of $12 billion. If one company advertises and the other does not, the company that advertises earns $52 billion and the company that does not advertise loses $4 billion.
      1. Under what conditions could these firms use trigger strategies to support the collusive level of advertising?