2017 Semester 3 (2017.3)
Assessment 3: Individual Assignment
This assignment is marked out of 50 marks and contributes towards 15% of your total marks for the subject.
Complete all the questions below based on your reading of the relevant sections of Chapters 5 and 7-9 of the recommended text book (see below).
Your assignment must be submitted as a word document AND through Turnitin. Diagrams if included must be hand drawn and then, scanned or photographed and pasted onto the word document. Turnitin is a software that will indicate the extent that your assignment has been copied from elsewhere. It is okay if Turnitin indicates a percentage copied, provided you have proper in-text referencing and it is not excessive (e.g. more than 50%).
You will be able to source what you need to complete the assignment from the recommended text book but avoid simply copying and pasting large sections from the text book or using Thesaurus or other software to blindly substitute words because some key words are unique Economics terms.
Due Date: 21 JANUARY 2018 (Sunday) just before midnight. Marks will be deducted on a daily basis for late submissions.
Resource: The prescribed text book A, Robinson. T, and Tucker I. (2015) Economics for Today Chapters 5 and 7 – 9.
Compare the market structures of Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly under the following headings (about 250 words).
- number of firms in the market
- similarity of the products sold
- barriers to entry
Why would it make sense that if you operated a firm in a perfect competition environment you will not set a price above the market price nor would you set a price below it? (About 50 words)
Discuss under each of the following markets, whether its firms will engage in non-price competition such as advertising? In your discussion, explain why you think so. (About 60 words)
- Perfect competiton
- Monopolistic competition
Explain the term “price discrimination” and give three (3) examples of how firms practice it. (About 50 words)
Which market structure do you think each of the following businesses belong to. Explain your choice.
- The Woolworth supermarket chain of stores in your city (Melbourne/Sydney)
- A single Woolworth supermarket in a small town in country Victoria or NSW
- A small café in Melbourne/Sydney CBD
- Yarra Tram in Melbourne or Sydney Trains in Sydney
- Australia New Zealand Bank
- Academies Australasia Polytechnic
- A small store that sells souvenirs such wallets, caps, tee-shirts, key chains in your city’s Sunday market that has many such stores
- Iphone and Samsung in the mobile phone industry
|Diagram A||Diagram B|
The above are diagrams of demand curves facing two firms.
Which demand curve applies to the Perfect Competition firm and the other to the Oligopoly firm? Explain why you think so (Hint: consider their price elasticities of demand)