MGE1108 ECONOMICS FOR BUSINESS-Explain the term “price discrimination” and give three (3) examples of how firms practice it
Assessment 3: Individual Assignment
Question 1
Compare the market structures of Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly under the following headings (about 250 words)
- number of firms in the market
- similarity of the products sold
- barriers to entry
(12 marks)
Question 2
Why would it make sense that if you operated a firm in a perfect competition environment you will not set a price above the market price nor would you set a price below it? (About 50 words)
(6 marks)
Question 3
Discuss under each of the following markets, whether its firms will engage in non-price competition such as advertising? In your discussion, explain why you think so. (About 60 words)
- Perfect competiton
- Monopoly
- Monopolistic competition
(12 marks)
Question 4
Explain the term “price discrimination” and give three (3) examples of how firms practice it. (About 50 words)
(5 marks)
Question 5
Which market structure do you think each of the following businesses belong to. Explain your choice.
- The Woolworth supermarket chain of stores in your city (Melbourne/Sydney)
- A single Woolworth supermarket in a small town in country Victoria or NSW
- A small café in Melbourne/Sydney CBD
- Yarra Tram in Melbourne or Sydney Trains in Sydney
- Australia New Zealand Bank
- Academies Australasia Polytechnic
- A small store that sells souvenirs such wallets, caps, tee-shirts, key chains in your city’s Sunday market that has many such stores
- Iphone and Samsung in the mobile phone industry
(8 marks)
Question 6
| Diagram A | Diagram B |
The above are diagrams of demand curves facing two firms.
Required:
Which demand curve applies to the Perfect Competition firm and the other to the Oligopoly firm? Explain why you think so (Hint: consider their price elasticities of demand)
(7 marks)
Set c
