This document discusses several economic concepts including elasticity of demand, monopoly resources, firms in competitive markets, oligopoly, monopolistic competition, measuring a nation's income, and oligopoly in the context of the Microsoft antitrust case. It provides examples and definitions for each concept.

1. PREPARED BY :-
RINKESH.M.PRAJAPATI
ENROLEMENT NO :- 117020592039
MBA – SEM – 1
SUB:-EFM

2.  If the price of admission were higher, how
much shorter would the customer line become?
 The answer is depend on elasticity of demand.
 To estimate the price elasticity of demand. we
have to use historical data.
 Admission price
 Other factor
• weather, population, size of collection.
Concept :- elasticity of demand.

3.  Arises from the ownership of a key resource.
 How much market power does debeers have?
 Close substitute of product.
 The price of its product
 Debeers pays for large amounts of advertising.
concept:- Monopoly resources

4.  The revenue from the few customers could
not possibly cover the cost of running the
restaurant.
 Fixed and variable costs.
 Similar decision, Miniature-golf course.
 Revenue substantially from season to
season.
 Open when its revenue exceeds its variable
costs.
Concept:- firms in competitive market.

5.  First of all, case about the market for crude oil.
 OPEC countries together make up an oligopoly.
 These countries control about three-fourths of the
worlds oil reserves.
 They would like to maintain a high price of oil.
 OPEC was most successful at maintaining high
prices from 1973 to 1985
 In recent year, the price of oil rose significantly.
The increased demand in the world oil market.
Concept:- oligopoly

6.  What effect does advertising have on the price of a
good?
 The article published in the journal of low and
economics in 1972, economist lee benham tested
these two views of advertising.
 Professional optometrists enthusiastically endorsed
these restrictions on advertising.
Concept:- Monopolistic Competition

7.  Rich and poor countries have vastly different levels of GDP per
person.
 Table shows four of the worlds most populous countries ranked in
order of GDP per person.
Country GDP per Life Adult Internet
person Expecta Literacy Usage
ncy
United $35,750 77 years 99% 55%
states
Germany 27,100 78 99 41
Banglade 1,700 61 41 <0.5
sh
Nigeria 860 52 67 <0.5

8.  International data leave no doubt that a nations
GDP is closely associated with its citizens “standard
of living”.--
Concept:- Measuring a Nation's income.

9.  The case against Microsoft corporation, in 1998.
 Microsoft should be allowed to integrate internet
browser into its windows operating system.
 Putting new features into old products
 The government argued that the company had
substantial monopoly power.
 Microsoft case became a legal morass.
 November 2002,the government accepted that a
browser would part of the windows system
Concept:- oligopoly