This assignment requires substantial research (see the assessment criteria below)-
(a) Identify the key characteristic of four market structures (i.e. monopoly, oligopoly, perfect competition or monopolistic competition). Give a case study example of each market structure.
(b) Explain what negative externalities are, and why there may be a case for government intervention to address them. Describe any two ways to correct the negative externalities and the pros and cons of each method. Provide real life examples.
(c) Choose a case study from your home country where an externality exists in a current market. Illustrate the situation with externalities in your case study and the resulting deadweight loss in a diagram and discuss ways that your government has addressed the presence of negative externalities in the market.
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.
- 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.
- Remember an extension is not a gift, it is a burden.
Length 3,000 words.