Monopolistic Competition


Research Essay expectations, instructions and helpful hints

ECON20039 Assignment 2

• This assessment is worth of 30% of the total assessment. Therefore, it is
absolutely essential that students do well in this task to pass the unit.
• The word limit is 3000 excluding the bibliography. However, if your response
is within 15% (plus or minus) of the word count, you will not be penalised.
• The task is specified as an essay, albeit loosely, you should adhere to the essay
writing principles as much as possible (Intro-Body-Conclusion). However,
students are given the freedom to suit the best approach. For example, one
might opt to tackle parts (a) and (b) together and part (c) separately. Another
might use different subheadings to flag each section separately.
• You must read the article, “How to write Essays in Economics” provided in
the Moodle Assessment block before start writing.
• All key concepts must be defined clearly. Apply the DAAD framework in
your analysis.
• State the assumptions for the economic models that you use in your response.
• Diagrams must be clear and labelled correctly. Free-hand diagrams converted
to jpeg or other picture files are ok. However, photocopied or scanned graphs
from books or journals are not acceptable.
• Demonstrate your research effort, particularly in parts (b) and (c).
• As indicated, the task requires conducting a considerable amount of research
on the subject. Part (b), in particular, requires students to identify an industry
in a monopolistic competition.
• For example, in part (b) the brief description of the industry may include
comments on the scope of the industry (what’s included), main activities,
major players and market share, statistics on number of firms (if available),
• An efficient way to find this information is to use the IBISWorld Industry
Market Research Database provided through CQUniversity library. You may
also research ABS website or other industry reports from industry body
• The task is not to provide too much descriptive information but to analyse
information as much as possible. For example, key features of the
monopolistic model (no. of sellers, type of product sold, entry conditions, etc.)
can be discussed using specific examples from your chosen industry.
• Part (c) of the task deals with a prominent market failure issue facing Australia
in recent times. You should discuss negative external effects that may be
arising from the project and how they can be addressed. There are numerous
media items and newspaper articles written about the Adani Carmichael coal
mine (Australian Financial Review, The Australian, The Age, Sydney

Morning Herald, ABC, Queensland government websites, etc.). These can be
excellent sources to find facts about the project and for a descriptive overview.
• Evidence of research and appropriate referencing are allocated marks. The
School of Business and Law uses APA referencing style. If you do not know
how to reference or paraphrase, please seek help from the Academic Learning
Centre staff of your Campus.
• Provide a list of references. Attention should be paid to the quality of
references. There are many websites, which may not be credible or worthy of
citing in an academic piece.
• Refer a wide range of sources such as academic texts, journal articles, reports,
websites and news media.
• CQUniversity takes plagiarism seriously. You must provide references to all
your arguments unless they are your own. If you appropriately cite the idea,
then you won’t be plagiarising.
• The originality of your submitted work will be assessed in the Turnitin system.
You must try to keep the Turnitin Similarity Index of your submission below
15%. Please note that there is a time lag for the Similarity Index to appear for
the subsequent submissions. Therefore, students need to submit their work
early if further improvements were to be carried out.
• The overall presentation, clarity of expressions and use of graphs are also
allocated marks. It is essential that you structure your response in a logical
• Extensions requests must strictly adhere to the University and School
guidelines with supporting documentation. All extension requests must be
submitted via Moodle’s “Assessment Extension Request’ system (in the
Support block)
• You are reminded to submit your work well in advance in order to avoid last
minute technical problems.
• Please do not hesitate to post your queries on Q&A Moodle forum or contact
your Campus lecturer or me for further clarifications.
Good luck with your submission!


According to Amacher & Pate (2013) among the four types of market models, monopolistic competition is the most common. Monopolistic competition model represents an ideal real world situation where the market is imperfect. In this type of market there are numerous sellers each being relatively smaller and controlling smaller shares of the market. In most instances, firms operating in this model engage in non-price competitions such as branding and advertising to acquire more customers. In part of the essay part A and B address various issues related to monopolistic competition model. Part A addresses the behaviours of firms operating in monopolistic competition while B analyses a monopolistic industry evaluating the behaviours of the firms in the market.