• Home
  • Textbooks
  • Economic Issues and Policy (with InfoApps 2-Semester Printed Access Card)
  • International Trade

Economic Issues and Policy (with InfoApps 2-Semester Printed Access Card)

Brux, Jacqueline Murray

Chapter 13

International Trade - all with Video Answers

Educators


Chapter Questions

02:35

Problem 1

What characteristics are necessary for a market to be competitive? Are there many competitive markets in the real world?

Jonathan Tapiwa
Jonathan Tapiwa
Numerade Educator
01:02

Problem 2

What are the disadvantages of market power for society?

Kaylee Mcclellan
Kaylee Mcclellan
Numerade Educator
01:39

Problem 3

What are barriers to entry? Why must barriers to entry be present if market power is to exist in a particular market?

Marcus Esteban
Marcus Esteban
Numerade Educator
01:39

Problem 4

Discuss the following barriers to entry: (a) economies of scale, (b) exclusive franchises, (c) control of essential raw materials, (d) patents, (e) product differentiation, (f) licenses, and (g) price-cutting. Describe how each functions as a barrier to entry by new firms.

Marcus Esteban
Marcus Esteban
Numerade Educator
01:43

Problem 5

Can you think of any examples of price-cutting that may exist in your community? Are you aware of any such activity involving some of the products that you purchase?

Daniel Cisneros
Daniel Cisneros
Numerade Educator
04:01

Problem 6

What are some examples of product differentiation in industries other than those discussed in the text?
Especially think in terms of some of the products that you purchase.

Ansh Varma
Ansh Varma
Numerade Educator

Problem 7

Can you think of other examples of price discrimination besides those mentioned in the text? What about the way that airlines charge their business clients one price (noting that businesspeople often purchase fares just before they travel and that they have little flexibility in when and whether they travel) versus fares charged to vacationers (who often have alternative means of travel, choice over the time of travel, and the ability to purchase tickets in advance)? Can you explain the different fares charged by the airlines in terms of price discrimination?

Check back soon!
03:04

Problem 8

Can you explain why adult and child moviegoers are often charged different amounts when going to the movie theater, keeping in mind that both an adult and a child each takes up an entire seat?

Md.Daniyal Arshad
Md.Daniyal Arshad
Numerade Educator
01:20

Problem 9

How do tariffs and import quotas harm the consumer? How do they harm the U.S. worker?

Srikar Katta
Srikar Katta
Numerade Educator
00:48

Problem 10

Are you a liberal or a conservative with respect to antitrust and economic regulation?

Liuxi Sun
Liuxi Sun
Numerade Educator
01:08

Problem 11

You are undoubtedly aware that most of the tickets that you purchase for rock concerts and other events go through Ticketmaster, and, of course, there is always a fee connected with this. Do you believe that Ticketmaster uses its market power to charge unnecessarily high fees for its service? Do consumers (and rock bands) have any alternative to using Ticketmaster? Are you aware of any bands that have chosen to supply their tickets without using Ticketmaster? If so, how successful have they been? One forum for views about Ticketmaster is on Wikipedia, the free encyclopedia, at http://en. wikipedia.org/wiki/Ticketmaster.

Niamat Khuda
Niamat Khuda
Numerade Educator
00:52

Problem 12

Open the Department of Justice's antitrust page (http:/l www.usdoj.gov/atr), and click What's New. List the new cases that have been initiated.

Lauren Shelton
Lauren Shelton
Numerade Educator

Problem 13

Go back to the Department of Justice Web site at http:/l www.usdoj.gov/atr. Find the page that explains how to report possible antitrust violations or potential anticompetitive activity. Read the confidentiality page with respect to reporting violations.

Check back soon!
02:20

Problem 14

Check out the Census Bureau Web page that focuses on concentration ratios (http://www.census.gov/epcd/ www/concentration.html). Can you find concentration ratios for markets that are not reported in this book? Find one market you are interested in and determine whether it is competitive or concentrated. By the time this book is published, you may be able to find updated concentration rations for the year 2007 .

Nick Johnson
Nick Johnson
Numerade Educator

Problem 15

Go to the Web site of the American Antitrust Institute at http://www.antitrustinstitute.org. This institute is an independent Washington-based nonprofit organization dedicated to education, research, and advocacy to assure competition and challenge unduly concentrated power in the U.S. and world economies. Read the organization's mission on its home page. Would you say that this is a liberal, conservative, or centrist organization?

Check back soon!
01:16

Problem 16

Google purchased YouTube for $\$ 1.6$ billion in 2006. Now, in addition to a search engine, Gmail, calendar, chat room, and other applications and tools, Google owns the popular video-sharing Web site. What implications might this purchase have for market power and concentration?

Carson Merrill
Carson Merrill
Numerade Educator