Economics

Choose a firm that has a major presence in Australia. Define the market and identify the key competitors (if any). Analyse the
output market characteristics of this firm (e.g. perfect competition, monopoly, oligopoly etc.). If possible, justify your answer
using real-time market data (e.g. market share, profits, sales etc.) for this industry in recent years. Explain the profit maximising
condition of this firm.
Next, assume at least TWO changes in the market conditions (e.g. changes in cost of production, new entry or exit of firms in the
industry, changes in government policy etc.). How each of these changes will affect your firm’s position in the market, both in the
short and long runs? Do these changes affect the profit maximising level of output and price in the short and long runs (analyse
each change separately)? Comment on the efficiency levels of this firm and the industry overall.
Make sure to provide a rationale and justification for any of the assertions you make. You are expected to draw
upon the theoretical concepts contained in the course in your discussion of such aspects as market structure,
entry and exit, and rivalry between competitors. Use proper diagrams to illustrate your answer.