Q1. Suppose there are two monopolies. One monopoly supplies water and the other monopoly provide landline phone connections. Which company is likely to have greater market power and why? Explain using the concept of elasticity.
Q2. Identify and justify the market structure of KFC, MacDonald’s and Hungry Jack. Explain using diagrams.
Q3. Critically discuss the level of competition faced by Charles Darwin University in Darwin vs the campus in Sydney. Explain using diagrams.
Q4. Suppose fire emergency services are only provided by the government in Australia and there is no market for fire emergency services. Now assume that fire emergency services are not provided by the government anymore and are privatised. Show the demand and supply diagram of fire emergency after privatisation. Explain the price elasticity of demand for fire emergency services. Show with the aid of a diagram and explain your answer.
Q5. Identify the main models of competition learnt in this unit. Give a brief description of each model in no more than 100 words. Discuss the most realistic models of competition in Australia with examples.
Q6. How will student enrolments be impacted at CDU if the pass mark at CDU was increased from 50% to 60% for all tertiary students? Explain using demand and supply diagram.
Q7. a. Explain the slope of marginal cost curve. How is marginal cost linked to opportunity cost?
b. Why is concept of marginal cost important in economics?
c. What is the marginal cost of adding an additional household on to the NBN network?
Q8. How best do you explain the success of supermarkets using the concepts learnt in this unit?