ECON11026 Term 2 Assignment: Market Structures and Economics

This economics assignment analyzes various market structures, including perfect competition, monopoly, and monopolistically competitive firms. The solution explores profit maximization, cost analysis, and market inefficiencies within these structures. The assignment includes calculations of total revenue, total cost, marginal revenue, and marginal cost to determine optimal output levels and profit/loss scenarios for firms. It examines how changes in price affect production decisions in a perfectly competitive market and discusses the power dynamics in a monopoly market. The document also analyzes the impact of externalities, such as pollution, and the role of government intervention in achieving economic efficiency. The assignment incorporates graphical representations to illustrate key concepts, such as cost curves, supply and demand, and deadweight loss. It also covers the effects of new entrants in the market and the shift of supply and demand curves. The solution provides a thorough understanding of how firms operate in different market environments and the factors influencing their profitability.