hi i need help with these questions please

1.(a) Explain the purpose of the Australian Competition and Consumer Commission (ACCC).

(b) Go to the ACCC website at and find a recent case of a business practice that has breached the Competition and Consumer Act (CCA) (2010) and discuss this.

2.Read 'Making the Connection 8.3' on page 234 of Chapter 8, Hubbard et. al, Essentials of Economics, 4th ed..

Anti-competitive behaviour in the airline cargo industry In early 2006, competition regulators from around the world raided a large number of airline offices to investigate alleged price-fixing arrangements in the air cargo industry. The European Union, the United States, Australia, New Zealand, Canada, the Republic of Korea and other countries have since instituted legal proceedings against a large number of international airline companies. In Australia, the Australian Competition and Consumer Commission (ACCC) began legal proceedings against airline companies in 2008, with some cases continuing for many subsequent years. Between 2000 and 2006, many major airlines entered into arrangements and understandings with each other to fix the price of the fuel surcharge that they each applied to their freight transport prices. This had the effect of reducing price competition in the air cargo industry, as a component of the price of air cargo servicesthe fuel surchargewas fixed. The result of collusion in price setting is higher prices for customers and higher profits for the airlines. By 2013, Australian court cases of price fixing and alleged price fixing involved 16 companies, many of them large and well known, including: Air France Air New Zealand British Airways Cargolux (Luxembourg) Cathay Pacific Airways Emirates Japan Airlines International (JAL) KLM (Holland) Korean Airlines Lufthansa Cargo (Germany) Malaysian Airlines Martinair Cargo (Holland) PT Garuda Indonesia Qantas Airways Singapore Airlines Cargo Thai Airways International Large penalties were applied by Australian courts to the convicted companies, totalling almost $100 million by the end of 2012, including Qantas ($20 million), Singapore Airlines Cargo ($11.75 million), Cathay Pacific ($11.25 million), Emirates ($10 million), Thai Airways ($7.5 million), Malaysian Airlines ($6 million), Japan Airlines ($5.5 million), Korean Airlines ($5.5 million), British Airways ($5 million), Cargolux ($5 million), Martinair ($5 million), Air France ($3 million) and KLM ($3 million). By 2013, fines in the United States for some of the above airlines together with some US airlines totalled over US$1.7 billion, with fines ranging up to US$350 million (e.g. Air France, KLM) and gaol terms applied to some executives. In the European Union, related cases received fines totalling over $1 billion.

(a)Explain why the behaviour of so many airline companies throughout the world was seen by the ACCC in Australia, and also governments in Europe, the USA and many other countries, as anti-competitive.

(b)In what ways were producers and consumers disadvantaged by the behaviour of the airlines?

Answer the following questions as true or false and explain your answers.

(a)Firms in a perfectly competitive industry use advertising to differentiate their product from their competitors' products, so that they can sell more and charge a higher price.

(b)Even when demand increases, firms in a perfectly competitive industry earn zero economic profit (normal profit) in the long run.

(c)Firms operating in a market structure characterised by monopolistic competition face little or no competition.

(d)In an oligopoly, firms monitor closely the behaviour of their competitors.

4.(a)Outline the main characterising features of a monopoly market.

(b)What are the most important ways a firm can become a monopoly?