30 Apr HOW WAS DE BEERS ABLE TO CONTROL THE WORLD PRICE OF DIAMONDS OVER THE PAST SEVERAL DECADES EVEN THOUGH IT PRODUCED ONLY 45 PERCENT OF THE DIAMONDS?
Discuss the major barriers to entry into an industry. Explain how each barrier can foster either monopoly or oligopoly. Which barriers, if any, do you feel give rise to monopoly that is socially justifiable?
Question 8
U.S. pharmaceutical companies charge different prices for prescription drugs to buyers in different nations, depending on elasticity of demand and government-imposed price ceilings. Explain why these companies, for profit reasons, oppose laws allowing reimportation of their drugs back into the United States.
Question 9
How was De Beers able to control the world price of diamonds over the past several decades even though it produced only 45 percent of the diamonds? What factors ended its monopoly? What is its new profit strategy?
Question 10
Under what law and on what basis did the federal district court find Microsoft guilty of violating the Sherman Act? What was the initial district courts remedy? How did Microsoft fare with its appeal to the court of appeals? What was the final negotiated remedy?
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