Assessment Type 1: Folio Task

Task 2: Microeconomics — Market Structures

Purpose

Students assess and analyse different market structures in the real world using economic analysis and theory. They analyse how different market structures benefit and disadvantage both consumers and producers differently using real world examples.

Description of Assessment

Students must work by themselves and investigate 3 different market structures at the minimum. Students must choose from perfect competition, monopolistic competition, oligopoly and monopoly. Students should analyse the characteristics of each market structure and determine their impact in the real world. Students must find a real world example of a business in each market structure and analyse how both consumers and producers interact with market. Students should research the impact on both producers and consumers in their real world examples. Students may assess market failures which arise from some market structures.

Task

Choose 3 different market structures from perfect competition, monopolistic competition, oligopoly and monopoly.

Market structures range on a scale based on competitiveness.

With every market structure you choose, you will also need to find a real world example for each structure. For example, gas/electric/utility companies, steel manufacturers, grocery store brands, oil companies, hair salons, clothing companies, coffee shops, farmers’ markets.

You must explain how these market structures can be differentiated. What are the characteristics of each structure. How do both consumers and producers both interact with the market. What benefits and disadvantages are there for both the consumer and producer in the market.

Using the context of your real world example, find data and evidence to support your claims of how consumer and producers both have advantages and disadvantages in the market structure.
Consumers and producers are looking for different things when they engage in a market. For example, consumers ideally want the lowest price for a good quality product. Producers ideally would like to make the most profit, as well as other objectives.

Additionally, you may also consider potential market failures which occur under certain market structures.

Research

In your essay you should include information and data on how in your real world example, how has the market structure has affected both the consumer and producer. For example, in a monopoly structure, perhaps find data on consumer satisfaction in the market. Find data on the quality of the product or the rate of technological innovation.

Format

Your report should be a maximum of 1200 words or the 7 minutes maximum multimodal equivalent. It must contain data (extensive data may be included in an appendix if needed) and economic models to support your analysis.

This is a general guideline for the format of this assessment. This isn’t a requirement, only a suggestion. You have freedom to approach the assessment in a different style. or format as long as you adequately cover all the requirements.

Assessment Conditions

Students are to individually present a 1200 word essay or a maximum 7 minute multimodal equivalent.

Assessment Design Criteria

U 1 Understanding of economic concepts, principles, and models in a variety of contexts.

Ap 1,2,3 Application of communication skills in an economic context

A&E 1 Analysis of a range of economic data, models and principles

Performance Standards — Stage 2 Economics