Exercise 9-2 Market Structure

Market Structure table
https://docs.google.com/document/d/1vKttMR1pTnf1U4feItcEgW4YvOL1HbmY57_r9oE5N2w/edit?hl=en_US

Market Structure Graphs
https://docs.google.com/document/d/1c6FvtSiGEavknxs8SBMFFkX_gUR55DmSkwMVvO2PJHk/edit?hl=en_US

Assignment #3 - My 5 Businesses

Frito-Lay Inc

Mattel Inc

McDonalds Inc.

OceanaGold Corporation

WestJet Airines Inc

Unit 8: Exercise 8-1 Game Theory

Game theory is defined as a method of analyzing firm behaviour that highlights mutual interdependence among firms. game theory has been used since as early as World War I, when war moves depended on the other Countries move and guessing what they may do next. For some a successful way and others not so successful. It can also be traced back to the western times when card counting became a benefit to poker players. Counting cards in poker can help a player guess what cards may still be in the deck and what other players may have in their hand. This can be very beneficial in staying in, folding and how much to bet, also very illegal. Players would be shot dead in the old days for commiting such a crime.

Game theory is used as commonly as everyday life and can be as simple as a group of friends deciding on where to go for dinner, or as complicated as a big player in the fast food industry taking out "ma and pop" type restaurants.

The payoff matrix is designed to explain the four different outcomes that exist in entering a market that another company controls. A new company enetering a market share results in the other company taking a loss, or having to lower prices to keep their share. The newer company can also start with a lower price and take more of the share for itself, or start at the same price sharing the market.



Collusion is an attempt to supress the competition and a cartel is a group of firms who agree explicitly to coordinate their activities to raise the market price or decrease the market output, creating more demand and profits. These actions are nor morally right but also have implications in a legal responsibilty. 

Monopolistic Competitive Companies

https://docs.google.com/document/d/1NEjvwlMoxZ5duVu_K3PsBNg4Ipq1XcnDg4dXeGC6R8M/edit?hl=en_US

Competing as Starbucks

https://docs.google.com/document/d/1tYp5KEyPiqu6-xH_qlm2ZsWryGHVNsLKBobG6azdUiU/edit?hl=en_US

My Deli and Coffee Shop

https://docs.google.com/document/d/1RZUskGgrglSpOAPsGo9yptIZP9xXDM3Pqq2K-xsfsc8/edit?hl=en_US&pli=1

The Law of Diminishing Returns

The Law of Diminishing Returns and "The Diminishing Returns to Tobacco Legislation" on PierreLemieux.org website

https://docs.google.com/document/d/1rS2L21P5Qi0LcrNu2LNMyiH--4_w_jSJuXY1msH2a7w/edit?hl=en_US