Subject: Economics    / General Economics    

Question

a) What do you understand about the behaviour of firms operating under monopolistic competition? In answering this question, as a minimum, you should discuss:

    Key features, including the structure of the market place for such firms
    Using diagrams, explain how short run and long run profits or losses might arise
    Describe the process by which profits or losses are eroded
    Comment on productive and allocative efficiency of firms in the model (8 marks)

(b) Choose an industry where monopolistic competition prevails, illustrate and evaluate the behaviour of firms in the market. As a minimum, you should:

    Provide a brief description of the industry
    Discuss key features with examples
    Using examples, evaluate the behaviour of the firms and their net impact on consumers (10 marks)

(c) Using suitable diagrams, illustrate and discuss the negative externalities arise from Adani Group's Carmichael coal mine located in Queensland's Galilee Basin. Explain the ways in which the market failure associated with coal mining can be addressed. (8 marks)

Additional marks:

Overall presentation of work, the use of graphs and the clarity of written expression (2 marks)

Evidence of research and appropriate use of referencing (2 marks)

Total = 30 Marks
Assessment Criteria

    Besides the textbook, you should also refer to a few other academic books, journal articles and relevant websites in answering these questions.
    Sources must be acknowledged and a list of references provided.
    All submissions for this course must use the American Psychological Association (APA) referencing style (details can be obtained here).
    Concepts must be defined accurately and completely.
    The assumptions upon which the analysis is based must be stated at the onset.
    Diagrams must be drawn properly, correctly labelled and the relations they depict explained.
    Photocopied and scanned graphs from books, articles or websites are not acceptable. It is preferable to hand-draw a graph then scan it to insert in your file.
    Answers must be complete, addressing the specific tasks nominated in the questions.
    Extensions are granted strictly according to the policy guidelines.