Read Chapter 16 – Issue: Market Power

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Content:

Opening story: Desert Pete and the water pump – 649

Introduction to the Issue – 650

Exercise 16.1: Math the Firm to Its Market Structure – 658

Expanding the Models – 662

Shared Tools: Accounting profit and economic profit – 662

Conventional Theory Tools: Perfect competition versus monopoly – 665

Conventional Policies – 679

Liberal Policy: Market power regulations – 679

Conservative Policy: Free-market competition – 680

Radical Theory Tools: Production for profit and production for use – 682

Radical Policy – 687

Radical Policy: Prosocial competition laws – 687

Discussion Story: MCI versus AT&T – 691

Understanding the Issue – 694

Quick Activity: “The Brands in Your Life” – 694

Copyrights, Patents, Trademarks, and Licenses – 701

Liberal view – 702

Radical view – 703

Conservative view – 703

Voices on Market Power – 707

• Liberal: Voice, Summary, Talking Points – 708

• Radical: Voice, Summary, Talking Points – 715

• Conservative: Voice, Summary, Talking Points – 722

The Shared Outcome – 729

Three-in-One Activity: “To Merge or Not to Merge, That Is the Question” – 730

Re-Vote – 739

Test Yourself, Key Terms, Answer Key – 739