Cost & Market Structure

“Cost & Market Structure” is pretty easy to understand. Businesses face various costs in order to produce goods and sell them, and identifying those costs shouldn’t be difficult. Applying a market structure to that good will require a little more thought, since the newspaper article will not likely talk about the market structure for that firm’s industry. This assignment focuses on applied knowledge with a little bit of creative skill, But just a little bit. And only in the “market structure” part. In this assignment, you must choose a newspaper article written after January 1, 2018, and explain how costs of production apply to that article. Whenever possible, integrate the vocabulary terms. Be descriptive, demonstrate your understanding of 100–level “theory of the firm”, and apply that knowledge to the article. This part of the writing assignment involves no creativity. All identified costs must be contained in the article…do not talk about rent as a fixed cost if the article does not mention rent. You must also characterize the market structure of the industry as “pure (or perfect) competition”, “pure (or near) monopoly”, “monopolistic competition”, or “oligopoly”. This part of the assignment will likely be based on your own analysis, since newspaper articles rarely talk about market structure. This replaces the “analysis” part of previous written assignments, and you should fully explain why you think that firm fits the specific properties of your chosen market structure. Remember that it’s your opinion.