Market Structures

 Q1)

On May 4, 2020, McGraw-Hill and Cengage announced that they had agreed not to pursue the merger (that was proposed last year, in May 2019). You can read about it below.

https://www.bloomberg.com/news/articles/2020-05-04/mcgraw-hill-cengage-jointly-agree-to-terminate-planned-merger

Apply your knowledge and understanding of market structures to comment on the proposed merger and the most recent update.

Q2)   

In late April, oil prices dropped to a historic low: -$37 (negative $37!) per barrel, on the May futures contract.

The short video clip below talks about the supply and demand conditions that led to this unusual occurrence.

https://youtu.be/4mE0Rol1nEQ

Required: The OPEC has long served as an example for a cartel in lessons (in economics) on Oligopoly. Apply your understanding of game theory to explain why OPEC finds it difficult to enforce production limits (quotas) on its member countries. One article is provided for your reference; you may want to read at least one more. Cite additional article(s) you read.

https://www.bloomberg.com/news/articles/2020-05-04/opec-middle-east-oil-flows-surged-in-april-as-saudis-opened-taps