Reference no: EM133192824 , Length: word count:2500

Assessment - Research Essay

Question a) Explain the market failure associated with negative externality. Choose an oligopoly industry from your home country that creates a negative externality.

Describe your case study in sufficient details, provide relevant information, use table, diagrams where appropriate.

Question b) Using real data from your case study identify its key characteristics in relation to the factors used to differentiate among the market structures. Contrast oligopoly and other market structures regarding the allocation of resources.
Identify the key factors that distinguish market structures and explain the differences in market outcomes (L e. price and quantity) among these market structures. Use features of market structure such as number of sellers, type of product, entry conditions, profits and losses in the short and long run, advertising, research and development and appropriate diagrams to answer this question.

While your textbook is your first point of reference, you should consult other references in order to receive full marks. Use real life examples (with references) to support your discussion.

Question c) How does the government address the negative externality in your case study? Explain using economic theory and illustrate it on a diagram. Suggest an alternative way in which the market failure associated with negative externality can be addressed in your case study. Use real data from your case study and explain using economic theory and diagrams.

This is the analysis of your case study where you need to analyse the effect of intervention using the theory and real data from your case study.

Question d) Explain the effect of pandemic on your chosen industry using economic theory, real life data and illustrate it on a diagram. Explain the effect of pandemic on negative externality.

This is the analysis of your case study where you need to analyse the effect of pandemic on market outcomes (La price and quantity), provide relevant information, use tables, diagrams where appropriate. You should use real data as much as possible.