parenthesise), if heavily borrowing from a source. In a situation if you use a direct quote from Part A: Market Power causes and consequences (maximum 700 words): another source, it should be in " " quotation marks, and properly referenced. Considering the supermarket industry in New Zealand, why can it be classified as a duopoly Diagrams: market structure and not monopolistic competition; and what economic forces in the You are asked to draw a diagram for Part A. The diagram should appear in the correct position in groceries industry can cause this form of market structure outcome? What are the main your essay and referred to in the relevant discussion in your essay. economic concerns, in relation to strong market power in the duopoly supermarket industry conditions in NZ? In particular, explain using economic analysis and your knowledge based on Topics 3 on pricing, and 4 (e.g. game theory), how and why price competition and other efficiency or equity aspects of the market may be affected, during extended periods when Assignment Task two firms have a duopoly situation. Draw a diagram to support your answer. ESSAY QUESTIONS: Part B: Regulation Policy Options (maximum 700 words) Market structure, government review, and the case of supermarkets in New Zealand. Commerce Commission's interim report has suggested some potential regulation policy You may be aware that the New Zealand government has tasked the government agency, The options. What are some viable and effective policy options? Which of policy options are Commerce Commission, to review the market structure in the supermarket industry in NZ. This expected to be most effective and why? review, which started in 2021 is still ongoing, with the expectation of a final report in 2022. An Do you recommend one of the main policies being considered by the Commerce interim report was provided by the Commission, signalling serious concerns over high market power Commission "to facilitate the entry of a third supermarket chain in this market"? Analyse in the sector in NZ. A media release in July 2021 referred to the interim report (link in footnote 1). using economic reasoning (e.g. Topics 2, 3 and 4) and explain why, or why not. Also Definite policy regulations were not confirmed by the Commission, but a review, some options, consider and discuss whether and why the government may have hesitations in taking up including the facilitation of the entry of a third supermarket chain were being considered. this particular policy recommendation, based on advice by some economists? "An executive summary, the full draft report and infographics on the draft findings, recommendations and themes from the consumer survey conducted in March are available on the Commission's website ". (Commerce Commission website). This is not a unique case, where market power in an industry has emerged, followed by government review and action. Many international government policy responses have involved using regulation, and other policy tools to address or reduce the problem. In fact, supermarkets in a number of countries have come to show excess market power in the groceries industry. Notably, there has been strong and increased competition watch by governments in recent years. In fact, according to a New York times article (6 January 2015), "A Brazilian court imposed the longest jail sentence for price-fixing, ordering a Brazilian executive found guilty of price-fixing between two airlines to spend more than 10 years in prison and pay a $156 million fine that year". In your essay address the following considerations (parts A and B have equal marks). Parts A and B have equal marks. You are asked to draw a diagram of your choice to support your answer in Part A. When appropriate, you can also support your answers of economic analysis by further adding evidence from other studies or countries Media Report, Commerce commission (21 July 2021): https://comcom.govt.nzews-and- media/media-releases/2021/commission-releases-draft-report-on-competition-in-the-retail-grocery- sector 3