Essay Application of Economic Principles – Big Pharma Companies in the US – Report Writing Economics Assignment Help

Assignment Task:

Other instructions: 

• You will not be penalised for going over the word limit per se, so long as what is written is relevant and answers the question. As a rough guide, you probably should not go over by more than 100-200 words. 
• In this exercise, for the diagrams/models, you might want to make a quick reference from the CORE ESPP text and/or lecture materials. You can briefly mention where you got the CORE model/diagram from. Just be wise and careful to write in your own words when you draw upon the lecture slides and CORE readings. 
• As a general rule, a bibliography is not really needed. This is not designed to be a major research activity, it is rather contained in the sense that the CORE and lecture materials plus references associated with the questions should be sufficient, and there is no need to include these sources in a bibliography – suitable in-text referencing yes, but not end-text referencing (a bibliography). 
• You should not need to do an exact copy of a graph from the unit materials — as this is an applied activity — a graph may closely resemble something from the materials, but it will not be an exact match. 

Q1. PRICE MAKERS – Big Pharma companies in the US (E2) 

In extremely competitive markets it is impossible to make much profit. The most profitable industries are those with significant degrees of monopoly power when firms have the power to raise prices without losing too many consumers. Drug companies in the US are an example of firms having substantial pricing power.

Based on this discussion and economic theory, draw an appropriate diagram of the profit-maximising firm using a relevant demand curve to illustrate and explain in some detail the monopoly power of pharmaceutical companies in the US. Refer to key sentences and ideas from the article where relevant to support your analysis. 

Q2. PRICE TAKERS – demand and supply for macadamias in Australia (E2) 

Consider the competitive market for macadamia nuts in Australia,

Use relevant demand and supply diagrams to demonstrate the current state of the market and the likely future scenario of macadamia nut prices in Australia. Carefully label the curves and clearly indicate the equilibrium prices in the current scenario and future scenario. 

Q3. MARKET FAILURE – delivery workers in the US (E3) 

What are the external effects? Consider the importance of US delivery workers in the coronavirus pandemic,

Based on this discussion and economic theory, draw an appropriate diagram to illustrate and explain this specific type of externality. Demonstrate on your diagram and discuss what would be a suitable government policy to help solve the market failure in this case. 

Q4. MARKET FAILURE – packaging in the UK (E3) 

Consider the external effects of soft-drink packaging on UK beaches,

Based on this discussion and economic theory, draw an appropriate diagram to illustrate and explain this specific type of externality (assume the market is competitive). Demonstrate on your diagram and evaluate what would be a suitable government policy to help solve the market failure in this case.