Introduction

Question 1

What is referred to as Industry?

Answer 1

1. Manufacturing productive enterprises collectively, distinguished from agriculture.
2. Any large scale business activity

Question 2

Distinguish between the industrial organisation of steel and tourism industry?

Answer 2

The difference is based on the workings of the market and and the industries

; the way firms compete with one another

Question 3

Why do we consider industrial organization as a separate subject and not a part of the microeconomics?

Answer 3

In order to emphasise upon the strategies of the firm as a characteristic of market interaction.
1. Price competition
2. Product positioning
3. Advertising
4. R&D

Another thing is that
1. Microeconomics = either perfect competition or monopoly
2. Industrial organisation = Oligopoly

Question 4

What are the main four central questions to industrial organisation?

Answer 4

1. Is there any market power?
2. How do firms aquire and maintain market power?
3. What are the implications of market power?
4. Is there any role of public policy regarding market power?