TYPES OF MARKETS
- Students must prepare a three to four page typewritten double-spaced paper on a current macroeconomic topic that is pertinent to class material. This can be chosen from the textbook, newspapers, magazines, or current economics periodicals.
- Students will be expected to analyze and evaluate the issue or topic and provide recommendations. Here are some sample topics:
- Countries that do not believe in comparative advantage
- How do people respond to economic incentives?
- Stories of positive or negative externalities
- What’s the best healthcare system in the world?
- Examples of behavioral economics
- Differences between monopolies, monopolistic competition, oligopolies, and the perfectly competitive market
- Income inequality throughout the world
- Length – 3 to 4 pages in length, double-spaced, with 1 inch margins. Any paper that deviates from these requirements will be penalized (this does not include the title page and the table of contents). Arial or New Times Roman (12 pt) will be the only acceptable fonts. Use headings within the report when appropriate. A table of contents page is necessary. Plan the paper carefully so as to develop an organized and non-redundant report. It should be organized and assembled as a continuous report and should not appear to be several independent segments bound together. You must have a minimum of FIVE SOURCES. Please cite your sources using MLA or APA Format (the Writing Center can offer assistance if you do not know how to do this). Some other helpful sites include – http://owl.english.purdue.edu/
owl/resource/560/01/ (Links to an external site.)Links to an external site., http://owl.english.purdue.edu/ owl/resource/557/01/ (Links to an external site.)Links to an external site., http://www.cuyamaca.edu/ tpagaard/EnglDept/Resources. htm (Links to an external site.)Links to an external site.
ANSWER PREVIEW
They are driven by different characteristics and assumptions which influence decision making in companies. However, all these market structures all operate under the assumption of maximizing profits, whether there exists high or no competition at all. However, some of these market structures are not realistic such as the perfectly competitive market. Instead, they exist as theoretical constructs which may characterize an economy.
Monopolies
Monopolies refer to the type of market structure where only one company controls the market. In such a circumstance, buyers do not have alternative sellers; hence, the monopoly holds the ultimate power over the market and its products. Therefore, this type of market structure takes advantage of their power and the buyers by increasing prices of goods, hence experiencing higher profits. However, since they are not desirable, they are often regulated by the government to avoid consumer manipulation (Bresnahan and Reiss, 2016). The monopoli…
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