3 Discussions

Module 6 Discussion

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After watching the video clip from Forrest Gump, consider that Forrest’s good luck of “being in the right place at the right time” allowed him to operate as a monopoly. Typically, the fishing industry is a highly competitive industry where economic profits are rarely made in the long run. However, in a twist of fate, Forrest’s boat is the lone survivor after a hurricane washes ashore and destroys all the other shrimp boats.

Consider the barriers to entry facing potential competitors in Forrest’s monopoly market. The more contestable a market, the closer it will be to a perfectly competitive market, whereas the less contestable a market, the closer it will be to a monopoly.

What barriers to entry exist in other industries that allow certain firms to operate as a monopoly?  Are these barriers contestable?

Module 7 Discussion

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Search the web and view the video clip Golden Balls - £100,000 Split Or Steal? 14/03/08. After watching the video clip, answer the following questions:

· How does the Prisoners’ Dilemma apply in the game of Golden Balls?

· Is the Prisoner’s Dilemma entirely applicable in this game? Why or why not?

· What would you do if you were playing this game? Explain your reasoning.            

Module 8 Discussion Contains unread posts After watching the video clip from The Corporation, consider that labor is a derived demand. What forces are at work demanding low-skilled labor in the developing world? What could a country do to improve the types of skills demanded of its labor?