Your task is to select a real-world market and determine which model of market structure studied you think would be most appropriate to describe that market. You should discuss how the nature of the market structure relates to the market outcomes observed.
Market Selection
You must clearly define the market that you are analysing.
As this is an individual assignment, students should not intentionally select the same market as their classmates.
Economic Analysis
The exact details of your analysis may depend on what is appropriate for the market selected. In most cases many of the below will be relevant, but not all will be relevant to all cases. You should focus on what is most relevant to your market to draw out the key relevant concepts for your case. A coherent argument should be presented around this. Do not simply go through the dot-points below sequentially or use these as subheadings.
Topics that may be useful to address:
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How well the market fits the assumptions of the model
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The nature of the product (eg. differentiated?)
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Factors about the production technology of the product, such as: Are there economies of scale? How might the minimum efficient scale compare to the size of the market? Are there any other interesting aspects of the cost structure that might be an important part of the story regarding the type of market observed, the pricing, or profits?
The task for Assignment 2 is available below: Your task is to select a real-world market and determine which model of market structure studied you think would be most appropriate to describe that market. You should discuss how the nature of the market structure relates to the market outcomes observed. Market Selection You must clearly define the market that you are analysing. As this is an individual assignment, students should not intentionally select the same market as their classmates. Economic Analysis The exact details of your analysis may depend on what is appropriate for the market selected. In most cases many of the below will be relevant, but not all will be relevant to all cases. You should focus on what is most relevant to your market to draw out the key relevant concepts for your case. A coherent argument should be presented around this. Do not simply go through the dot-points below sequentially or use these as subheadings. Topics that may be useful to address: · How well the market fits the assumptions of the model · The nature of the product (eg. differentiated?) · Factors about the production technology of the product, such as: Are there economies of scale? How might the minimum efficient scale compare to the size of the market? Are there any other interesting aspects of the cost structure that might be an important part of the story regarding the type of market observed, the pricing, or profits? · How large is the number of competitors? · What is the degree of market power of firms in this market? · How do firms compete or set prices in this market? · Are there significant barriers to entry? · What outcomes do we observe such as prices, mark-ups, profits and firm entry/exit? · It may be useful to contrast short-run and long-run responses in the market to changes in demand or supply factors, or more particularly to economic profits · Is it an increasing-cost or decreasing-cost industry, and is this relevant to the analysis? Real world markets often do not perfectly meet the assumptions of the models, so in many cases you may also discuss (if relevant) which aspects of the real-world market do not fit the model (or are closer to a different model) and which aspects of market interaction or outcomes are not well described by the model selected. Where market diagrams are used, they should be your own diagrams, whether prepared in a computer software, or (often more easily) hand-drawn and a scan/photo embedded in the document. Referencing You must ensure appropriate referencing, which can be in any standard style, so long as it is consistent. The Harvard referencing style is preferred, as it is the standard in Economics and is also common in Business disciplines. https://www.adelaide.edu.au/writingcentre/resources/referencing-guidesLinks to an external site. All submissions will be analysed with the assistance of Turnitin plagiarism checking against other students in the class and external sources. Word Limit 1500 words (excluding diagrams and references) Grading The assignment will be graded against the Assessment Criteria in the Rubric attached to the MyUni Assignment. (or are closer to a different model) and which aspects of market interaction or outcomes are not well described by the model selected. Where market diagrams are used, they should be your own diagrams, whether prepared in a computer software, or (often more easily) hand-drawn and a scan/photo embedded in the document. Complete the task as described, and upload your submission here by the due date. To give you some additional examples of how this task could be approached, attached are some examples of students' submissions from a previous teaching period, provided with the students' permission. These a good papers in certain aspects, but certainly not perfect. They are intended to provide you additional guidance only. Grading Criteria · Evidence is shown of understanding of relevant economic concepts and terminology which are correctly applied throughout whenever relevant · Demonstrate a solid understanding of the core concepts and tools of economics. · Relevant data and evidence are sourced by the student and employed usefully within their analysis · Interpret charts, graphs, and tables and use the information to make informed judgments. · Appropriate market structure identified with reference to evidence · Apply economic principles and reasoning to solving business problems. · Evidence of understanding of the market structure model/s employed, and evidence of ability to apply the model/s · Relate basic economic theory and principles to current economic issues and evaluate related public economic policies. · Analysis presented provides a logical explanation of changes in real world market outcomes · Appropriate writing style and correct usage of an appropriate referencing style · Communicate their knowledge and understanding of economic issues using written, verbal and visual expression.