Length 3,000 words
Please note that this question requires substantial research (see the assessment criteria below).
(a) Explain perfectly competitive and monopolistically competitive market structures, and identify the key factors that distinguish them. (6 marks)
(b) Choose two different Australian industries that represent monopoly and monopolistic competition. What characteristics 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. (10 marks)
(c) Explain various price discrimination strategies available to firms. Evaluate the price discrimination behaviour of the industries that you identified in part (b). (6 marks)
Additional marks (8 marks)
Evidence of substantial research and analysis. (4 marks)
Overall presentation of work, including the use of graphs and clear written expression. (2 marks)
Appropriate use of referencing including in-text referencing. (2 marks)
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.
Research Student: Professor: Course title: Date: Research A perfectly competitive market and a monopolistic market are 2 market structures which have a number of major differences, for instance with as regards barriers to entry, price control, as well as share of the market. This paper provides an exhaustive discussion of the perfectly competitive and monopolistically competitive market structures, and the main factors which differentiate them are identified. Two different Australian industries which represent monopoly and monopolistic competition are identified and discussed. The characteristics of these industries and their products which can be utilized to explain the differences between these two market structures are discussed. Lastly, different price discrimination strategies that are available to business organizations are described, and the price discrimination behaviour of the previously identified industries are evaluated. 1.0 Perfectly competitive and monopolistically competitive market structure 1.1 Perfectly competitive market structure The 4 main features of a perfectly competitive market structure are as follows: undifferentiated products and services; there are many small companies; there is perfect knowledge of technology and prices; and there is perfect resource mobility/no barriers to exit and entry (Romano, 2012). Large number of small companies: a market structure which is perfectly competitive is made up of many small companies and each...