Principles of Economics for Accountants – 1000 words (only from economics background please)

There are 3 questions based on a news. please check attachment for complete assignment.

Note few things when writing your answers

q1. Indicate rent-seeking behaviour of the firm as collusion and price setting are both examples of rent-seeking. Define collusion and provide measures of collusion. Describe other measures of market power such as predatory pricing or dumping – look at your lecture notes.

q2. Define cartel. According to the article, it is a tacit cartel (add arguments from the article). Draw a diagram of DD and SS- show the eq price and quantity. Due to the cartel, the price will increase compared to the eq price. Show the effect on CS and PS before and after cartel – look at your lecture notes.