Reference no: EM132204025 , Length: word count:2000
Assignment - Essay Question
Answer the following question ensuring that you apply economic principles or theory related to the concepts of benefits, costs and market structure in which a firm operates to inform your analysis and support your decisions.
Question - Identify, from media reports on Australian industry, an example of a firm that has significant monopoly power. Identify the inefficiencies in outcomes that arise, or would arise, if the firm was free to exercise that power. Finally, explain how government intervention is used, or may be used, to curb that power and provide a more efficient outcome for the economy.
Rationale - This assessment task will assess the following learning outcome/s:
- be able to make decisions that incorporate the relevant benefits and cost analysis.
- be able to explain and defend why it is important to understand the structure of the market in which a firm operates.
This assignment provides an opportunity for you to present a detailed analysis of the operation of firms in a particular market context through the application of your knowledge of theory supported by evidence drawn from sources of your choosing.
The answer to the question should be divided into three parts:
Part 1: Introduction
The introduction sets up your response by succinctly stating your understanding of the issues, what you think is the best way to analyse the situation - including choice of theory and sources of evidence, what type of findings you expect and what potential applications you expect there to be.
Part 2: Analysis
The analysis will represent the bulk of your work. Here you will provide your answer in detail by drawing upon the literature, the theory and the evidence to come up with an answer to the question posed. You may find that you want to break this section up into a number of sub-parts - one for a detailed discussion of the issues including your non-technical response, one for a detailed analysis of the tools of analysis you will use (theory), one for your extensive consideration of the evidence, one where you draw together your information and findings along with their implications.
Part 3: Conclusion
In the conclusion you briefly and succinctly review what you have done in answer to the question and indicate what further issues there might be to be considered.