ajaz_eco_204_2012_2013_chapter_16_Market_Power

Eco 204 s ajaz hussain do not distribute pineapples

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Unformatted text preview: imited supply of taxicab medallions. 3 ECO 204 Chapter 16: Analysis of Firms with Market Power (this version 2012-2013) University of Toronto, Department of Economics (STG). ECO 204, S. Ajaz Hussain. Do not distribute. Pineapples: According to this Wall Street Journal article for a long time Del Monte had a patent on the world’s bestselling “Gold” pineapple and vigorously fought to protect its pineapple until a Court ruled th at Del Monte had planted a different pineapple and immediately invited a flood of entrants and resulting in lower prices. See the article for a juicy (no pun intended) description of how Del Monte patented the Gold pineapple. Drug Dealers: Economists have long argued that drugs should be legalized and its sale regulated (just as alcohol is sold by the LCBO). Illegalizing drugs restricts supply, raises prices, which incentivizes criminal elements (i.e. drug dealers). Is it any wonder that drug dealers are protective of their turf and when new “firms” enter the m...
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