ECON 4: Principles of Microeconomics

Choose a product—either a good or service—produced and marketed by more than one firm and describe its “market structure.”  (The instructor strongly urges you to choose the same good or service than you studied in the earlier “Supply and Demand Analysis Analysis.”

Chapters 7-11 in the Greenlaw, Shapiro, & Taylor textbook (2e; 2017/2020) give you crucial information on market structure:  The market structure for a product depends on the following conditions: (1) number of firms producing either identical or differentiated products; (2) how many buyers are available to buy the product and how many sellers are available to sell the product; (3) the extent and nature of the relevant information available to sellers and buyers in order to make rational decisions about the product that they are buying and selling; and (4) the barriers to entry and exit that firms confront.

Start with analyzing the reality of your chosen particular market with these textbook conditions (theory).  Support your analysis of description of market features with information from research sources that can include newspapers or news (including business) magazines, credible blogs, research institute reports, government reports, or peer-reviewed articles.

In these research sources look for evidence of your judgment about the market structure conditions.

Use the 4-step process for supply and demand analysis for one demand analysis and on supply analysis.  Explain how the market structure influences our understanding of demand and supply changes.

Consider and explain how trends in technology or government regulation will impact the industry.

The conclusion to your Analysis should include investigation for what changes in the market will meanto the businesses selling the product and the costumers buying the product.

Use of appropriate diagrams, charts, and analytical tables is expected to be used in describing your analysis.  Use of appropriate charts displaying relevant data (FRED charts, for example) would be useful to describe the trend and changes in the factors that influence demand or supply.

Find six to ten(6-10) worthwhile articles about the market that you are studying.  The textbook and sources of data or charts do not count toward the 6-10 references described here.  You may use references discovered in your Week 3 written assignment on Demand & Supply.  You may use appropriate websites—but you want to be very careful of bias and reliability of information.  Some websites are not to be used:  www.wikipedia.org or www.investopedia.com are examples of websites to avoid.  See suggestions below.

Write an Analysis that is less than 3 pages in textual material.  Title page, reference list page, and appendices with exhibits do not count toward the 3-page maximum.  The instructor strongly urges that students follow the APA Style Manual, but any consistently applied style standard can be used.The Analysis should be well-organized, coherent, and integrated.  The Analysis should be consistently formatted, written, and organized from start to end.

Your analysis should use the key concepts and terminology of microeconomics within your presentation.You should rely on textbook definitions, explanations, and analyses—but always remember application, rather than regurgitationis important.  You should use graphical or tabular displays of data with commentary.

Market Structure AnalysisAnalysis, continued on next page

Market Structure Analysis Analysis, continued

A partial list of worthwhile periodicals or websites to use follow:

• the economist
• Wall Street Journal
• Fortune Magazine
• Forbes Magazine
• the Financial Times
• Business Week
• Los Angeles Times Business Section
• Orange County Register Business Section
• Los Angeles Times Editorial Section
• Orange County Register Editorial Section
• www.bloomberg.com
• www.cnbc.com (look under News/Economy)
• www.federalreserve.gov
• www.cbo.gov
• Or…identify a macroeconomic concept and “Google” it.

You must not use the following sources or types of sources in your required 8-12 articles.

• www.Wikipedia.org
• www.Investopedia.org
• Online encyclopedia
• Online dictionaries
• Online economics dedicated websites (that replicate textbook material; even if you don’t have doubts, ask.)

Please feel free to contact me by email or phone to resolve any continuing concerns.

Get to work!  Early and frequent attention to this project will make it fun, easy, and edifying!