Reference no: EM132582958

ECON5020 Economic Principles for Business Assignment - University of South Australia

TOPIC - 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 should make use of the Herfindahl index and market concentration ratio for your justification.

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?

Make sure to provide a rationale and justification for any of the assertions you make. You are expected to draw upon the theoretical concepts contained in the course in your discussion of such aspects as market structure, entry and exit, and rivalry between competitors. Use proper diagrams to illustrate your answer.

RESEARCH ASSIGNMENT FORMAT - Your task is to write a short research paper on the above topic. Word limit: 1500 words including references.

This is a research project and the structured as follows:

Introduction

Mention the main objectives of this research and the reasons you chose this firm. You may cite any relevant literature to explain the importance of your research.

Basic analysis of the firm characteristics

What kind of a market is this firm competing in - 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.

Which firms are the main competitors? How do the competitors influence the pricing decision of this firm?

Comment on the overall industry.

Change in market conditions

What happens when the market conditions change? You can use diagrams, charts, and tables to explain your findings.

Conclusions (may be in one short paragraph)

Summarise your findings and future policy implications for this firm and the industry overall. Is there any role of the government?

References

Do not forget to refer to the data sources and any other references you have used to write this short paper.