title Wendy Lewis

Task

Assignment 2 consists of one essay question (worth 30 marks) based on text material. Before attempting this assignment you are expected to have read Text chapters 1 to 10. You are encouraged to make use of additional sources. Sources used in your answer should be fully referenced in APA 6th style.

Answer the following question ensuring that you apply economic principles or theory related to the concepts of benefits, costs and market structure in which a firm operates to inform your analysis and support your decisions. Communicate your ideas with correct grammar, spelling and writing style and support your answer with diagrams and illustrative examples as necessary.

Question (30 marks)Explain how and why governments may want to regulate the price setting of a natural monopoly.

Rationale

This assignment provides an opportunity for you to present a detailed analysis of the operation of firms in a particular market context through the application of your knowledge of theory supported by evidence drawn from sources of your choosing.

The question addresses the following learning outcomes:

Learning Outcome 3: be able to make decisions that incorporate the relevant benefits and cost analysis.

Learning Outcome 4: be able to explain and defend why it is important to understand the structure of the market in which a firm operates.

Marking criteria

CriteriaHD (85%)DI (75-84%)CR (65-74%)PS (50-64%)FL (0<50%)Academic writing clearly communicates meaning (10% weighting).Language features and structures are used to convey meaning effectively, clearly, concisely, unambiguously, and in a tone appropriate to the audience and purpose with no spelling, grammatical, or punctuation errors.Language features and structures are used to convey meaning effectively, clearly, unambiguously, and in a tone appropriate to the audience and purpose with few spelling, grammatical, or punctuation errors.The text contains some errors in spelling, grammar, word choice, and structure, lacks clarity occasionally, and may not be concise, but the meaning is apparent to the reader with little effort.The text contains frequent errors in spelling, grammar, word choice, and structure, lacks clarity, and is not concise, but the meaning is apparent to the reader with some effort.Fails to meet criteria for a pass.Academic writing includes APA 6th referencing (10% weighting).Referencing is comprehensive, demonstrates academic integrity, and conforms exactly to APA style conventions.Referencing is comprehensive, demonstrates academic integrity, and conforms to APA style conventions with fewer than three minor errors or omissions which don’t impact on the transparency and traceability of the source or the demonstration of academic integrity.Referencing is comprehensive and mostly accurate according to APA style conventions. Up to eight minor errors or omissions in style and formatting choices (e.g. italics, punctuation, underlining) don’t impact on the transparency and traceability of the source, or the demonstration of academic integrity.Referencing is comprehensive and mostly accurate according to APA style conventions. Frequent minor errors or omissions in style and formatting choices (e.g. italics, punctuation, underlining) don’t impact on the transparency and traceability of the source, or the demonstration of academic integrity.Fails to meet criteria for a pass.Analyses benefits and cost components to provide market related recommendations in the context of the market structure of the industry in a manner which indicates the importance of understanding the structure of the market in which the firm operates (60% weighting).The answer synthesises the theory in relation to a firm’s benefits and costs in the context of the market structure in which the firm operates with new insights providing an in-depth application of the theory of the firm along with clearly labelled relevant diagrams to produce a comprehensive analysis that is used as the basis for identifying the correct decisions within the context of specific market circumstances.The answer evaluates the theory in relation to a firm’s benefits and costs in the context of the market structure in which the firm operates to analyse the question. Decisions based on analysis correctly reflect the options available given specified market conditions and are presented through a sound argument showing good judgement. However, minor errors have been found in the narrative or use of diagrams.The answer correctly interprets the theory in relation to a firm’s benefits and costs in the context of the market structure in which the firm operates to analyse the question. Decisions based on analysis correctly reflect the options available within specified conditions. However, some errors have been found in the narrative or use of diagrams.The answer identifies the most important elements of theory in relation to a firm’s benefits and costs in the context of the market structure in which the firm operates to analyse the question. Decisions based on analysis correctly reflect the options available within specified conditions. Limited explanation and poor use of diagrams provides marginal support for the conclusions drawn.Fails to meet criteria for a pass.Provision of examples to support, illustrate or elaborate the application of the theory of the firm, the benefits they seek, the costs they incur and the market structure in which they are found in a policy context (20% weighting).The answer provides an example or examples which support the synthesis of the theory in relation to a firm’s benefits and costs in the context of the market structure in which the firm operates with new insights to support the analyse of the question and/or the decisions based on this analysis. The narrative makes a strong link between the example(s), existing theory and new insights and the application of each to policy.The answer provides an example or examples which support the evaluation of the theory in relation to a firm’s benefits and costs in the context of the market structure in which the firm operates to support the analyse of the question and/or the decisions based on this analysis. The narrative makes a strong link between the example(s) and theory and their application to policy.The answer provides an example or examples which support the interpretation of the theory in relation to a firm’s benefits and costs in the context of the market structure in which the firm operates to support the analyse of the question and/or the decisions based on this analysis. The narrative makes the link between the example(s) and theory and their application to policy with only minor lapses in logic.The answer provides an example or examples which exhibit the most important elements of theory in relation to a firm’s benefits and costs in the context of the market structure in which the firm operates to support the analysis of the question and/or the decisions based on this analysis. However the narrative does not make a convincing link between the example(s) and theory and subsequent application to policy.Fails to meet criteria for a pass.

Presentation

Answers should be typed and diagrams must be clear and neat and preferably drawn electronically. Hand-drawn diagrams are acceptable. Sources used in your answer should be fully referenced in APA 6th style. The answer to the question should be divided into three parts: 

Part 1: Introduction

The introduction sets up your response by succinctly stating your understanding of the issues, what you think is the best way to analyse the situation – including choice of theory and sources of evidence, what type of findings you expect and what potential applications you expect there to be.  

Part 2: Analysis

The analysis will represent the bulk of your work. Here you will provide your answer in detail by drawing upon the literature, the theory and the evidence to come up with an answer to the question posed. You may find that you want to break this section up into a number of sub-parts – one for a detailed discussion of the issues including your non-technical response, one for a detailed analysis of the tools of analysis you will use (theory), one for your extensive consideration of the evidence, one where you draw together your information and findings along with their implications. 

Part 3: Conclusion

In the conclusion you briefly and succinctly review what you have done in answer to the question and indicate what further issues there might be to be considered. 

Requirements

Sources used in your answer should be fully referenced in APA 6th style.

 This assignment must be submitted through Turnitin.

It is recommended that your name, student ID and page number are included in the header or footer of every page of the assignment.Further details about submission in Turnitin are provided in online submission.