The guide below is constructed around the separate parts of the question. Question 1
a) Describe the market, products/services and justify your classification of this market as monopolistic competition
Your description should be brief but demonstrate a key understanding of the structure, conduct and performance of this industry / market. You must justify this selection as being an example of monopolistic competition, and do this you must relate your description to aspects of the theory. To put that another way, you must apply theory. b) Describe and discuss the types of producers/suppliers in this market, focusing on the various tactics and strategies you observe which typify their competitive behaviour
This is just adding detail to the description of the market, where we focus on behaviour (conduct) of the sellers. Again - applying theory. c) Discuss what you observe about consumer behaviour in this market, and how you think consumers respond to the competitive behaviour of suppliers Here we move focus to outcomes for consumers, and so we get closer to performance. Do we get the results from this market that we would expect? d) Explain and discuss aspects of this market where Government intervention, in any form, impacts on this market and its participants
e) Critically evaluate the role of government; does it help or hinder competition? What impact does it have on consumers?
These two aspects belong somewhat together, but are designed to get you to consider the role of Government in markets. Again, you should be considering structure, conduct and performance in this market, and think of Government role in that light. Again, we are applying theory to consider the role of Government. f) Summarise your own findings about this market and critically evaluate the relevant economic theory in the light of what you see in practice. The key words are underlined and should be considered as criteria for...