Assessment: Research Essay
Please note that this question requires substantial research.
(a) Identify the key characteristic of four market structures (i.e., monopoly, oligopoly, perfect competition or monopolistic competition). Give a case study example of each market structure.
(b) Explain what negative externalities are, and why there may be a case for government intervention to address them. Describe any two ways to correct the negative externalities and the pros and cons of each method. Provide real life examples.
(c) Choose a case study from your home country where an externality exists in a current market. Illustrate the situation with externalities in your case study and the resulting deadweight loss in a diagram and discuss ways that your government has addressed the presence of negative externalities in the market.
Length 3,000 words.