Task- Answer the following:
Question 1 - In any market structure, an appropriate once-off expenditure on product differentiation will guarantee the firm's ability to maximise economic profit into the future. Discuss.
Question 2 - Economics has difficulty in explaining why wage rates for individuals vary across occupations and industries and within occupations and industries. Discuss.
Rationale - The questions address the following learning outcomes:
- be able to apply demand and supply analysis to make a range of market related decisions.
- be able to explain and defend why it is important to understand the structure of the market in which a firm operates.
- be able to critically examine and demonstrate why it might be necessary for government to intervene in the production of goods and services and in the distribution of income.
2000 words.