What role do major producers of crude oil have in determining its price?
^ Need to look briefly at demand, Supply, pricing strategies (Game theory) used in this market (Market structure: Oligopoly) and then the welfare implications.
Using the models and theories of either (1) market structure, conduct and performance, (2) game theory or (3) the boundary of the firm, perform a microeconomic analysis of one appropriate economic issue or phenomenon of your choice. Clearly explain your chosen question, method and conclusions. Comment on the link between market structure and performance for your chosen issue.
State the question, why it’s interesting and economically significant. Present facts or data to illustrate.
• Select the right method (i.e. microeconomic model, theory or tool from this course) to answer your question. Explain your method. Assume your reader needs to be explained every concept needed to follow your analysis.
• Apply the method to your issue. Report the steps of your analysis and your findings. Typical analysis discusses the economic agents, how they exchange, the equilibrium and factors that change it and finally welfare implications. Use diagrams or models as they answer the question better than only words.
• Your conclusion will directly answer the question and maybe look at the big picture – the significance and limitations of your work. Clearly structure your report (depending on topic), for instance using numbered sections for each of the parts of the task, e.g. introduction, model, analysis and conclusion. Introduction and conclusion will normally be shorter.
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