Wednesday, May 28, 2014

econ review question 18



So there was big news last year that "The Chinese" were buying Smithfield, a large meat-packer.

(in case you hadn't heard, see http://online.wsj.com/article/SB10001424127887324412604578512722044165756.html )

Use the logic of oligopoly (Bertrand or Cournot) and game theory to explain why you just don't care.

In fact, after you contemplate the implied marginal product of Smithfield, you're rather pleased about the situation.

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