The three assigned concepts are the following: Price Elasticity of Demand, Principal-Agent Problem, and one of the following: Monopolistic Competition or Oligopoly or Monopoly.
Answers must be submitted to the course site by 8pm the evening of Friday the 7th of November. All answers must be submitted to the course site in RTF (Rich Text Format). Answers submitted in Word or WordPerfect format will not be accepted. Answers submitted after the deadline will not be accepted. Please title your RTF file in the following manner, Essay_2, and also included your Last Name and First Initial (e.g. Essay_2_MorganE). This assignment is worth 10 points.
The key to the essay assignment is to demonstrate your knowledge of the three assigned concepts. Essays answers should be clearly organized, succinct, informative, coherent, and thoroughly based upon an analysis of the assigned concepts. Always keep in mind that the key to the assignment is to demonstrate your mastery of the assigned concepts, the topic question(s) are included only to place your analysis of the assigned concepts into context. Don’t become overly concerned with the topic to the detriment of a detailed discussion of the assigned concepts. Also, you must remember that the assignment is not a research paper, it is an essay. I strongly suggest you keep the textbook closed when you write. With the textbook open, it will be very difficult to write an answer in your own words. Finally, DO NOT use material directly from websites, again I want to emphasize that the assignment is an essay, not a research paper; I am interested in your demonstration of a mastery of the assigned concepts, not any research you might conduct. Essays answers should be approximately two single-spaced pages in length – about a 1000 words; it is fine to go over 1000 words, but if you’re much over 2000 words contact me. Below is the format your essay answer should follow:
Assignment Format (5 sections)
a brief introductory paragraph (in this paragraph be sure to include a statement of purpose for your essay – what are you going to do and how are you going to do it.
Sections 2 through 4
a one to two paragraph section for each of the 3 assigned concepts you are addressing in your answer.
with each of your three assigned concept sections begin by first fully defining and explaining the assigned concept in your own words, only then move to apply the assigned concept in the context of the topic question(s)
a concluding paragraph.
The three assigned concepts are the following:
Price Elasticity of Demand,
and one of the following: Monopolistic Competition or Oligopoly or Monopoly.
Over the past decade we have seen significant fluctuations in the resource and the product markets for natural gas. From the perspective of the firms which supply natural gas products (namely energy utility companies) in the product market and the perspective of consumers, consider the characteristics of natural gas product market. Also be sure to keep in mind the connection between the product market and the resource market for natural gas — remember that the utility firms are the demanders in the resource market and the suppliers in the product market.
How does consumer responsiveness to price changes in the product market affect supply and demand considerations?
Do the consumers in the product market possess sufficient information to make fully informed decisions? Why not?
What is the nature of your local product market for natural gas; is it a monopolistically competitive, oligopolistic, or a monopoly market? Be sure to justify your conclusion through a thorough analysis of your selected market structure.
Academic Dishonesty Policy
If you do use the words, thoughts or ideas of another, you must properly cite your source (author name, publication, page number, and/or website address) and direct quotes must include the previous reference information and be placed inside quotation marks “…”, to do otherwise is plagiarism. Since I have seen this problem increasing of late, I do what to emphasize a particular point here. IF YOU COPY MATERIAL DIRECTLY FROM A WEBSITE AND SIMPLY PASTE IT INTO YOUR ANSWER WITHOUT CITATION, YOU WILL RECEIVE A ‘0’ FOR THE ASSIGNMENT. I should let everyone know that this type of plagiarism is very easy to detect by employing a Google search of any suspicious material.
If you do receive a ‘0’ for academic dishonesty, you will not be allowed to use that essay as your drop grade.