Essay Questions: 1) The tuitions and fees for any given institution of higher education are theoretically the same for all attending students. Colleges and universities, however, routinely charge different tuitions and fees to different students. These differences show themselves in various ways. In-state, and out of state status, differences in financial position of students' families, merit based awards, sports' scholarships and similar devices are among the methods that effectively change the price of same education to be different for different students. Explain what is this practice called and what are some of the motifs behind this behavior by colleges and universities.

2) Few years ago, the European Commission accused three major European breweries, Heineken, Grolsch, and Bavaria, of "carving up the market," and "price fixing" and imposed a fine of 274 Euros on them. Explain what kind of market structure give rise to this type of behavior and if they were successful in carrying out their plan, what would have happened in the European beer market.

3) For years, you were the owner/operator of a small gift shop in a remote rural area with no competition nearby. As such you were making above average profits every year. Consequently, new competitors were attracted to your market and eventually you found yourself surrounded by many competitors. Compare the original situation with the new one. State what are the differences between the two situations.