Explain Monopolistic Competition and Oligopoly market structures

Explain Monopolistic Competition and Oligopoly market structures

Length 3,000 words

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

a) Explain Monopolistic Competition and Oligopoly market structures, and identify the key factors that distinguish them. Choose two different industries from your home country representing Monopolistic Competition and Oligopoly, and identify their key characteristics in relation to the factors used to differentiate between the market structures. Using your case study, evaluate the efficiency of Monopolistic Competition and Oligopoly market structures. (16 marks)

In answering this question you need to

  • Discuss the key features of each market structure such as number of sellers, type of product, entry conditions.
  • Using diagrams, explain short run and long run profits and losses in each market structure.
  • Compare the allocation of resources in Oligopoly and Monopolistic Competition market structures with Perfectly Competitive market structure.

 

b) Explain whether there is a housing affordability issue in your country. (Hint: Provide analysis of housing affordability in your country using various factors such as changes in housing prices, income and others). Outline government solutions to the issue of housing affordability and analyse the main solution using economic theory. Suggest your solution to the housing affordability problem. Explain using economic theory and illustrate it on a diagram (10 marks)

In answering this question you need to

  • Provide a brief description of housing affordability.
  • Provide data for the case study from your home country.
  • Using economic theory and real data from your case study analyse government solution to the problem of housing affordability.
  • Explain your solution and illustrate your analysis on the diagram(s)
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