Imperfect Competition: Context-Rich Problem
and is replicated here as part of the SERC Pedagogic Service.
In this context-rich problem, students are asked to develop a scenario where two businesses would be likely to engage in cuthroat competition with each other.
Context for Use
Description and Teaching Materials
Suppose your neighbor is writing a novel. The two main characters in her novel run competing restaurants in a small town. They own the only two restaurants in this small town and are engaged in cutthroat competition with each other. Because your neighbor knows you are taking economics classes, she wants your help. What advice do you have to give your neighbor to make the competition in her novel both interesting and plausible? Prepare a one page plot outline to give to your neighbor.
The attached file contains the text of the context-rich problem. It includes instructions for students to complete a one-page written report. If you wish to have students discuss the context-rich problem in class, that activity can be completed in 5-10 minutes.
Imperfect Competition CRP Handout (Rich Text File 37kB Mar24 09)