Produce markets, like the Adelaide Central Market are a common feature in many countries. These make for a good study because, in many ways, they represent monopolistically competitive businesses with easy-to-observe business practices.
Look at a group of traders operating in the Adelaide Central Market (for example those listed in the ‘Fruit & Vegetables’ section of the Traders page on the Adelaide Central Market website. See: http://www.adelaidecentralmarket.com.au/traders/) and then answer Parts 1 and 2 below.
Part 1: If you were a prospective trader, what assumptions inherent in a perfectly competitive market could you ignore or modify in your objective to maximise profits? Use examples drawn from the website to illustrate your answer. Your explanation should be approximately 600 words
Part 2: Discuss why competition results in normal profits for traders in the long run. What measures could they follow to ensure long-run survival? Justify your explanation in approximately 400 words.
Note: This assignment must adhere to the following:
• Include a cover sheet that contains your course name, your first and last name and student number.
• Clearly indicate question number and part thereof for each of your answers.
• Submit as a Word document only; we may use track changes to provide feedback and grade your submission. Do not submit a pdf.
• When inserting diagrams such as a graph the following are acceptable:
- neatly hand–drawn diagrams inserted into the document as a picture
- diagrams copied from a text book or other source as long as the source is correctly attributed
- screen captures as long as the source is correctly attributed
- diagrams drawn using a drawing package that produces images acceptable to Word
• References use APA style as per text guide. If you use hyperlinks for referencing information, please include the hyperlink and name of site in your reference list.
• In text referencing, reference list, appendices and calculations not included in word count…