Economics for Business

Length 3,000 words

Please note that this question requires substantial research (see the assessment criteria below).

(a) Identify the key characteristic of four market structures (ie. monopoly, oligopoly, perfect competition or monopolistic competition). Give a case

study example of each market structure. (8 marks)

(b) Explain what negative externalities are, and why there may be a case for government intervention to address them. Describe some of the ways to

correct the negative externalities and the pros and cons of each method. Provide real life examples. (8 marks)

(c) Choose a case study from your home country(australia) where an externality exists in a current market. Illustrate the situation with

externalities in your case study and the resulting deadweight loss in a diagram and discuss ways that your government has addressed the presence of

negative externalities in the market. (10 marks)