Question:

For each of the following explain the degree of market power the seller has, and whether the market power is due to limited competitors, product differentiation, or both.

a. The Toyota Corolla, the bestselling passenger vehicle in the world in 2017

b. Heartland Mills, a grower of wheat in Wichita County, Kansas

c. Archer Daniels Midland (ADM), the largest producer of Lysine, a standardized amino acid used by farmers as a feed additive. ADM competes with a few large corporations in Europe and Japan

d. McDonald's, the most popular fast food restaurant in the United States

Answer:

a. Toyota Corolla: High market power. This is due to a smaller number of competitors and product differentiation offered.

b. Heartland mills: Very less market power. This is because of many competitors and no product differentiation.

c. ADM: Extremely high market power. This is due to a smaller number of competitors, making the seller a monopolist seller.

d. McDonald's: Some market power due to product differentiation offered.

The answers are correct, but answers need more explanation.Discuss how Toyota is in a competitive industry and give examples of other competitors.Discuss how Heartland Mills cannot set prices and explain why, given that there are many other wheat producers.Using the knowledge of Microeconomics.

Question:

When the Federal Deposit Insurance Corporation (FDIC) created deposit insurance after the Great Depression, what effect did this have on the occurrence of bank runs? Did the introduction of deposit insurance have the same effect on other financial markets, such as the stock or bond market? Explain.

Answer:

The creation of the FDIC helped to ensure and regain the trust of the public on the banking structure of the country which had been shattered by the bank runs earlier in the period.The FDIC aimed to insure the deposits of the bank with for the minimum amount of $ 250000.Hence a belief was developed that the banks won't run now.Also, the banks felt more secure and their liabilities were secure now, they were insured.Thus, this reduced the bank runs to the considerable level.But the scope of FDIC was limited up to commercial banks only and it did not take the credit unions and other financial institutions under its scope.It mainly aimed to insure the deposits of the commercial banks only.

Please offer a little more explanation and do the finishing.

Both are just need more explanation. Thank you so much.