The Grapes of Wrath: Competition, Welfare and Efficiency Australia (and the rest of the world) has recently experienced a sharp rise in inflation, often linked to by constraints in primary production and transportation, generating increased input costs which are snowballing through various supply chains. Households have observed this most notably through a sharp increase in the cost of groceries, though retailers have recently come under fire due to claims of price-gouging and other anti-competitive behaviours (see for example, Barrett 2024a; 2024b). This assignment will allow you to consider some of the underlying economic principles which allow us to better understand these phenomena. [Note: The instructions given here are wordy, but intended to give you maximum guidance toward success in this assignment. Type your answers straight into Cadmus. Do not cut&paste, as this will be flagged. Only diagrams should be pasted in, as images.] a) * Draw two models to represent the operating position of: i. A price-taking firm in a competitive market in long-run equilibrium. Why might this apply to an Australian fruit grower (e.g., grapes or other fruits as an example of a primary food producer)? 11. A firm with a considerable degree of market power. To what extent does this apply to an Australian food retailer (like Coles or Woolworths)? What is the source of the market power enjoyed by Coles and Woolworths? b) ** Now suppose we see an increase in input prices. Show what will happen t