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Economics Dr.

Katie Sauer

What a 16 Century Guild Teaches Us About Competition NPRs Planet Money 3/27/2012 http://www.npr.org/blogs/money/2012/03/27/149484066/the-tuesday-podcast-what-a-16th-centuryguild-teaches-us-about-competition After listening to the podcast, answer the following questions. 1. Toward the end of the 1500s in the Black Forest in Germany, craftsmen began weaving worsted fabrics. What was their concern?

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2. We know that reducing competition can result in less innovation. Was that the case with the guild? Explain.

3. Twice a year the guild members met. Two main activities occurred at their meetings. Explain.

4. What was the rationale for paying yarn spinners the same rate? What were some of the results of this policy? Why wasnt this policy adjusted?

5. Explain the size of workshop that the typical guild member had.

6. Could anyone join a guild? Explain.

7. Explain the zero-growth mentality and refute it.

8. Why didnt the customers of worsted fabrics do anything about the guild situation?

9. Explain why producers of worsted fabrics are better at organizing and lobbying than consumers of worsted fabrics.