(a) Explain perfectly competitive and monopolistic competitive market structures and identify the key factors that distinguish them.
(b) Choose two different Australian industries that represent monopoly and monopolistic competition. What characteristics of these industries and their products can be used to explain the differences between the two market structures? Using real data from your case studies, analyse the market outcome for each case study.
(c) Explain various price discrimination strategies available to firms. Evaluate the price discrimination behaviour of the industries that you identified in part (b).
Additional marks
Evidence of substantial research and analysis.
Overall presentation of work including the use of graphs and clear written expression.
Appropriate use of referencing including in-text referencing.
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 including graphs and images must be acknowledged and a list of references provided.
·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.
·Answers must be complete, addressing the specific tasks nominated in the questions.