Answer all 8 questions below.

The report should be 2,500 words in length. Marks are allocated for each question and sub-question as indicated below. Harvard referencing should be utilised with marks deducted if it is not used. Diagrams should not be copied and pasted, but drawn and labelled using the Word drawing facilities. Word equation editor is to be used where appropriate.

The final upload date for the coursework is 14.00 p.m., Monday 10th of May 2021. The coursework should be uploaded through the module Moodle site. You should upload one Word document which will contain your answers to the questions

The Word document will be submitted through Turnitin automatically when submitting to the assignment link.

Introduction [5 Marks] Part A: Microeconomics. Understanding the Most Famous Monopolies Government regulation of early American monopolies was initially absent. However, the creation of antitrust regulation in the United States, in the form of the 1890 Sherman Antitrust Act, led to the eventual dismantling and restructuring of Standard Oil and American Tobacco by 1911. Like many antitrust cases brought against companies even today, it took several years for these first cases to navigate through the court systemUnlike Standard Oil and American Tobacco, U.S. Steel was challenged, but not found to be the sole supplier of steel to the U.S. market. However, it continued to possess considerable market share for many years. In 2018, U.S. Steel was the 26th-largest producer of steel in the world, according to the World Steel Association. More Modern Times A more recent monopoly to have experienced the same fate as Standard Oil and American Tobacco is the American Telephone and Telegraph Company (AT&T). In 1982, AT&T was found to be in violation of U.S. antitrust law while acting as the sole supplier of telephone services to the country. As a result, it was forced to split into six subsidiaries, known as Baby Bells

Near-Monopolies

A good example of a near-monopoly from very recent history is the De Beers Group, the best-known diamond mining, production, and retail company in the world. De Beers was close to a true monopoly for almost a century, but due to a variety of market and regulatory factors, it has seen its market share go from over 80% in the late 1980s to around 35% in 2019.While several U.S. companies in sectors like technology, consumer products, and food and beverage manufacturing have been accused of being monopolies in the media and some in courts, they have rarely been proven so.

The Role of Nationalization

Most monopolies that exist today do not necessarily dominate an entire global industry. Rather, they control major assets in one country or region. This process is called nationalization, which occurs most often in the energy, transportation, and banking sectors. The largest such example of a nationalized major asset is Saudi Arabia's Saudi Aramco, the nation's state-owned oil and natural gas company .Most monopolies that exist today do not necessarily dominate an entire global It is arguably the single most valuable company in the world at $1.7 trillion as of its late 2019 IPO valuation

The Bottom Line

For everything, there is a season, even for monopolies. Monopolies often can help a country or region build or shore up its infrastructure quickly, efficiently, and effectively. But when any company becomes too dominant, leaving little room for competition, service, quality, and consumer wallets can suffer. That's where antitrust laws come in. [1]

1. [1]OurDocuments.gov. "Sherman Anti-Trust Act (1890)." Accessed April 3, 2020.
2. World Steel Association. "Top Steel-Producing Companies 2018." Accessed April 3, 2020.
3. The Minnesota Journal of Law, Science and Technology. "Whatever Happened to the Baby Bells? Internationalization and De-internationalization in the Telecommunications Industry." Accessed April 3, 2020.
4. Paul Zimnisky. "A Brief History of De Beers." Accessed April 3, 2020.

Question One: [15 Marks]

1. Explain using the above examples why a monopoly is problematic for a given economy or a government? (5 Marks)
2. Reflecting on examples from the article explain how public policy can curb Monopolies?

(5 Marks)

3. Using Cost curves explain how Monopolies make unusual profits? (5 Marks)

Question Two :[15 Marks]

Price	Quantity demanded	Quantity supplied
(cents per pack )	(millions of packs a week)
40	170	90
50	160	100
60	150	110
70	140	120
80	130	130
90	120	140
100	110	150
110	100	160

The demand and supply schedules for sweet packs are displayed in the above table.

a. What are the equilibrium price and equilibrium quantity of sweet packs? (3 Marks)

b. If sweet packs were 50 cents a bag, describe the situation in the market for sweets and

explain what would happen to the price of a pack of sweets. (3Marks)

c. Use the above data to draw a graph with the correct labeling. (4Marks)

d. Explain what is price elasticity of demand and explain why it would be important for producers to know the price elasticity of their product and how it would affect their decision making?

(5 Marks)

Question Three: [5Marks]

Income elasticity:

Judys income has increased from $10,000 to $12,000. Judy increased her demand for concert tickets by 10 percent and decreased her demand for bus rides by 5 percent.

a. Calculate Judys income elasticity of demand for concert tickets (2.5 Marks)

b. Calculate Judys income elasticity for bus rides. (2.5 Marks)

Question Four: [10 Marks]

Equilibrium in the labour market depends on the demand for labour and the supply of labour.

a. Graphically demonstrate how the supply of labour in the U.S. is affected by the increase in the labour force resulting from Mexican immigrants. (5 marks)

b.What other factors that can cause the labour supply curve to shift? (5 marks)

Question Five:[10Marks]

Externalities

Do you think that there would be external effects associated with Water from a uranium mine leaking into Kakadu National Park? If so, what would be the nature of the external effects? Can you think of policies that might deal with each external effect (that is, improve social wellbeing)?

(10 Marks)