Answer the following questions and briefly explain your reasoning: (a) [5 marks] Write down two (of the many) market frictions (distortions) observed in natural resource markets. Give an example for each market friction. (b) [5 marks] What are some key features of electricity generation? How do these features affect competition (before and after deregulation) in the electricity generation market? What allows electricity generators to exercise market power? (c) [5 marks] What are the three key components of the petrol prices in New Zealand? Explain why the NZ petrol price does not generally fully reflect the price decline during the oil price collapse. (d) [5 marks] Using the concept of economic rent by David Ricardo, suppose that we have five types of land, producing a yield of 750,500,490 units (e.g. quarters of corn), respectively. Explain how the Ricardian rent changes with each type being utilised gradually. Answer the following questions and briefly explain your reasoning: (a) [5 marks] Write down two (of the many) market frictions (distortions) observed in natural resource markets. Give an example for each market friction. (b) [5 marks] What are some key features of electricity generation? How do these features affect competition (before and after deregulation) in the electricity generation market? What allows electricity generators to exercise market power? (c) [5 marks] What are the three key components of the petrol prices in New Zealand? Explain why the NZ petrol price does not generally fully reflect the price decline during the oil price collapse. (d) [5 marks] Using the concept of economic rent by David Ricardo, suppose that we have five types of land, producing a yield of 750,500,490 units (e.g. quarters of corn), respectively. Explain how the Ricardian rent changes with each type being utilised gradually