1. Smart and Ferrari are both car firms. How do you thing these firms differ in the way they go about conducting their business or are they actually very similar in lots of ways?
2. How might the pricing policies of Smart and Ferrari differ?
3. What sort of market structure do Smart and Ferrari operate in? How might these market structures affect the behaviuor of the respective firms?
4. Explain the relevance of average, marginal and total costs to firms such as Ferrari and Smart.
5. Which do you thing is more likely to benefit from economies of scale - Ferrari or Smart? Expalin