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Identify the inefficiencies in outcomes

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Reference no: EM132205793

Question 1: For Assessment 1, I would like you to comment on the following topic :

"Can we consider a market that is monopolistically competitive efficient? If so, why?"

Please remember, one post per student and the post should not be longer than 600

Question 2: (1000 words)

Answer the following question ensuring that you apply economic principles or theory related to the concepts of benefits, costs and market structure in which a firm operates to inform your analysis and support your decisions. Communicate your ideas with correct grammar, spelling and writing style and support your answer with diagrams and illustrative examples as necessary.

Identify, from media reports on Australian industry, an example of a firm that has significant monopoly power. Identify the inefficiencies in outcomes that arise, or would arise, if the firm was free to exercise that power. Finally, explain how government intervention is used, or may be used, to curb that power and provide a more efficient outcome for the economy.

Reference no: EM132205793

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