Economics for managers

(a) What are the differences between the long-run equilibrium of a perfectly competitive firm and the long-run equilibrium of a monopolistically competitive firm? Compare the productive and allocative efficiency of monopolistic competition and perfect competition. (8 marks)
In answering this question, as a minimum, you need to
• Discuss the key features of each market structure such as number of sellers, type of product, and entry conditions
• Using diagrams, explain how short run and long run profits or losses might arise
• Describe the process by which profits or losses are eroded
• Compare productive and allocative efficiencies

(b) What are the characteristics of an oligopoly market? Choose an Australian industry that represents oligopoly. Justify your example by relating them to the characteristics of oligopoly market. (10 marks)
As a minimum, you should
• Discuss key features of oligopoly
• Provide a brief description of the industry
• Justify by providing actual and reliable data

(c) How can Australia address the housing affordability crisis? (8 marks)
In answering this question, you need to
• explain the demand side factors affecting housing affordability
• explain the solutions that have been attempted or are proposed to address housing affordability
• explain the possible supply side solutions to housing affordability

 

Assignment2

pessimists vs. optimists debate about the industrial revolution

What is the pessimists vs. optimists debate about the industrial revolution? Can you summarize the position of both sides? Where do you stand yourself?