Assessment (Research Essay)
Please note that this question requires substantial research.
Explain the market failure associated with negative externality. Choose an industry from your home country that creates a negative externality. (Hint: this is your case study that you need to describe in details, provide relevant information, use table, diagrams where appropriate).
How does the government address the negative externality in your case study? Explain using economic theory and illustrate it on a diagram. Suggest your ways in which the market failure associated with negative externality can be addressed. Explain using economic theory and a diagram. (Hint: use real life data from your case study).
Identify the market structure your case study belongs to. (Hint: Briefly explain four market structures, and identify the key factors that distinguish them such as number of sellers, type of product, entry conditions, profits and losses in the short and long run. Identify the key characteristics of your chosen case study in relation to the factors used to differentiate between the market structures. Use real data from your case study).
Using your case study, evaluate the efficiency of your chosen industry. (Hint: compare the allocation of resources and market outcomes between your chosen industry and perfectly competitive market structure using theory and real data from your case study).
Additional marks
Overall presentation of work, especially use of graphs, clear written expression.
Appropriate use of referencing.
Assessment criteria
- You must refer to the textbook in the first instance. Besides the textbook, you should also refer to a few other academic books, journal articles and relevant websites in answering these questions.
- Use in-text referencing and provide a list of references.
- All submissions for this course must use the American Psychological Association (APA) referencing style (details can be obtained at https://www.cqu.edu.au/student-life/services-and-facilities/referencing/cquniversity-referencing-guides).
- 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.