Question: (a) Explain the differences and common features between oligopoly and monopoly using the key characteristic of market structures.
In answering this question you need to
Discuss the key features of oligopoly and monopoly such as number of sellers, type of product, entry conditions.
Using diagrams, explain short run and long run profits and losses in oligopoly and monopoly.
Describe how oligopoly can be evaluated.
Comment on productive and allocative efficiency of oligopoly and monopoly (hint: compare it with perfectly competitive market structure).
(b) Identify the market structure of the building and construction industry in your country.Outline the solutions to the housing affordability problem in your country that have been adopted by the government (use diagrams to analyse these solutions). Propose your own solution to the issue of housing affordability in your country based on economic principles. Using a diagram, analyse the effects of your solution on the housing market.
In answering this question you need to
- Provide a brief description of your country's population, housing trends, housing demand and supply.
- Provide data for the building and construction industry including number of firms, employment, % of GDP, wages and salaries, turnover, profit.
- Identify the market structure of building and construction industry using key characteristics of market structures.
- Use real data from your country in supply-demand diagrams to illustrate the solutions.
Additional marks
Overall presentation of work, especially use of graphs, clear written expression.
Appropriate use of referencing.
Assessment criteria
- Besides the textbook, you should also refer to several other academic books, journal articles and relevant websites in answering these questions.
- Sources must be acknowledged in-text and a list of references provided.
- All submissions for this course must use the American Psychological Association (APA) referencing style (details can be obtained here).
- Concepts must be defined accurately and completely.
- The assumptions upon which the analysis is based must be stated at the onset.
- Headings and subheadings are encouraged but not mandatory.
- Tables and diagrams must be included where appropriate.
- 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.