ASSIGNMENT 2: WRITTEN ASSIGNMENT
Choose a firm that has a major presence in Australia. Define the market and identify the key competitors. Analyse the output market characteristics of this firm (e.g. perfect competition, monopoly, oligopoly etc.). Justify your answer using real-time market data (e.g. market share, profits, sales etc.) for this industry in recent years. You can make use of the Herfindahl index and market concentration ratio for your justification. Explain the profit maximising condition of the firm in such a market.
Next, assume ONE change in the market conditions (e.g. changes in cost of production, new entry or exit of firms in the industry, changes in government policy etc.). How will this change affect the market as well as your firm’s position in the market? Does this change affect the profit maximising level of output and price (analyse each change separately)? Comment on the efficiency levels of this firm and the industry overall. 阅读更多