Economics Assignment: Microeconomic Analysis and Market Structures

This economics assignment delves into various microeconomic concepts and market structures. The first question examines market regulation, externalities, and the application of excise taxes and the Coase theorem. Question 2 analyzes natural monopolies, comparing unregulated and regulated market outcomes, calculating deadweight loss, and exploring pricing strategies. Question 3 focuses on production functions, including total and marginal product curves, and identifies economies or diseconomies of scale. Question 4 investigates perfectly competitive markets, analyzing short-run pricing, profit/loss scenarios, and long-run market adjustments, including shutdown prices. The final question explores game theory, specifically dominant strategies and Nash equilibrium using a payoff matrix. The assignment draws on concepts from microeconomics, including market structures, externalities, production theory, and game theory.