Reference no: EM132673846

Using the models and theories of either (1) market structure, conduct and performance, (2) game theory or (3) the boundary of the firm, perform a microeconomic analysis of one appropriate economic issue or phenomenon of your choice. Clearly explain your chosen question, method and conclusions. Comment on the link between market structure and performance for your chosen issue.

Each has limit of 1500 words. In both assessments, your task is to conduct economic analysis of an issue that you select yourself, just as businesspeople and policymakers do. You will be assessed on what you learnt in the course by correctly choosing and applying definitions, methods and theories from lectures and tutorials. As this is a microeconomics assignment you should not write a general or journalistic report or use concepts from other courses not discussed in this course.

• Look at the business and economics news for ideas for an appropriate issue It needs to fit the purpose of microeconomics (lecture 1) - a topical, important example of resource allocation with questions you can answer by applying microeconomic methods. State the question, why it's interesting and economically significant. Present facts or data to illustrate.

• Select the right method (i.e. microeconomic model, theory or tool from this course) to answer your question. Explain your method. Assume your reader needs to be explained every concept needed to follow your analysis.

• Apply the method to your issue. Report the steps of your analysis and your findings. Typical analysis discusses the economic agents, how they exchange, the equilibrium and factors that change it and finally welfare implications. Use diagrams or models as they answer the question better than only words.

• Your conclusion will directly answer the question and maybe look at the big picture - the significance and limitations of your work.