Write essay in response to the topic provided below, apply the relevant microeconomic theories to explain and analyse the topic and defend your position by reference to theories and concepts studied in the course and credible evidence, also provide relevant reference to support the analysis conducted in the essay.

Essay Topic

In the essay, describe, explain, and illustrate the features of a perfectly competitive industry. Then, conduct research and describe the characteristics of the agriculture industry in a country of your choice (you can choose any country). Compare the features of a perfectly competitive industry with the characteristics of the agriculture industry in your country of choice. Based on your comparison is agriculture in your chosen country a perfectly competitive industry? Explain your conclusion. In the final part of your essay, discuss ways in which the government in your chosen country influences/assists (or not) the agriculture industry and farmers. What are the reasons for and consequences of the government's actions (or inaction)?

125% + A 19 View Zoom Add Page Insert Table Graph Text Shape Media Comment Collaborate Format Document 3 Text Body' Style Layout More FARM PRODUCT COST Font TOTAL SUPPLY AND DEAMAND COST Calibri C high co COST Bold 11 pt Sales Price Sales Price B IU S Character Styles None Lower costs FARM PROFIT Text Colour How changes in supply LOSS MAKING FARM BREAKING and demand affect the MAKING COST > Price = A LOSS EVEN FARM product price and farm E = profitability COST = Price = BREAK EVEN COST Bullets & Lists Imported Style 1 v Drop Cap A125% + A 19 View Zoom Add Page Insert Table Graph Text Shape Media Comment Collaborate Format Document 3 Text Body' Based on your comparison is agriculture in your home country a perfectly competitive industry? Justify your conclusion Style Layout More haracteristics of a Perfectly Competitive Features of Farming in Nepal that is an example of Font Industry - Farming this characteristic Calibri C Many Competing firms, businesses, or farms. How many farmers are in Nepal? What % of Nepal is Bold 11 pt cultivated? % arable land not cultivated? B IU S Character Styles None Similar products sold e.g., vegetables What crops are grown? Is there any product that Text Colour Nepal has advantage in and perhaps has an advantage in? E = Many substitutes for products so products From products grown are there similarities? E have price elastic demand Spacing 1,1 Equal small market share of each business. What is the size of farms? > Bullets & Lists Imported Style 1 v Drop Cap A Sellers are price takers. Products often sold What factors affect supply and demand for agricultural through agents or middlemen. Often under crops in Nepal? In table. contract. SUPPLY DEMAND How do middlemen ? How corruption affect Price received? Ease of Entry (land can be planted with If there is fallow unused land then ease to enter? If crops) and Exit (land can be left fallow). new generation do no wish to farm- this is a barrierED View 125% v Zoom Add Page 11 E (B E Q] El @ Insert Table Graph Text shape Media Comment Is agriculture in your home country a perfectly Briey make a conclusion based on the above table PC has no control over price, conclude why prices are controlled by factors outside the farmers control. What In what ways does the government in your home country affect agriculture and farmers, 69 Collaborate 59 El Format Ducumem Text Body' v Style Layout More Fan! Calibri Bold "pt 2 I u s (so Character Styles None' v Text ColourC - 7 / Spacing 1.1 / Bullets 8' Lists Imported Style1 v Drop cap 125% + A 19 View Zoom Add Page Insert Table Graph Text Shape Media Comment Collaborate Format Document 3) Text n what ways does the government in your home Body' country affect agriculture and farmers- (investigate price support and subsidies)? Style Layout More Font Calibri C Bold 11 pt B IU S Character Styles None Text Colour E = E In what ways?- see diagrams over Spacing 1,1 guaranteed minimum price for A subsidy from the government which reduces farmers Itural produce for farmers production costs- lower priced fertiliser or transport A diagram explaining how it osts for example. Th government covers these costs > Bullets & Lists Imported Style 1 v functions A diagram explaining how it functions Drop Cap A SUPPLY CURVE Price quaranteed Price for farmers produce Agricultural be price of products is Products The lower equilibrium generally ....... haver $ paid by the_ Share of the ELASTIC D government by sellers S>D The key consequence of A SURPLUS the subsidy is that it The SIZE of the the causes a substantial istance between the old increase in supply plus a and new supply curve DWL Quantity Quantity QUANTITY mande Quantity What are the reasons for and consequences consequences of the government's actions125% + A 19 View Zoom Add Page Insert Table Graph Text Shape Media Comment Collaborate Format Document 3 Text Body' What are the reasons for and consequences consequences of the government's actions Style Layout More Why are the governments action NOT as reeffective as is needed?s actions Font Calibri C Bold 11 pt B IU S Character Styles None Text Colour E = E Spacing 1,1 > Bullets & Lists Imported Style 1 v Drop Cap A CONCLUSION BIBLIOGRAPHY125% + A 19 View Zoom Add Page Insert Table Graph Text Shape Media Comment Collaborate Format Document 3 Text FILL IN THE BLANK SPACES Body' INTRODUCTION Style Layout More Font Calibri C Bold 11 pt B IU S Characteristics of Perfect Competition Character Styles None Many Competing firms, businesses, or farms. Similar products sold e.g., vegetables. Text Colour . Many substitutes for products so products have price elastic demand. Equal small market share of each business. E = Sellers are price takers. E Ease of Entry (unused land can be planted with crops) and Exit (land can be left fallow).# Spacing 1,1 > Bullets & Lists Imported Style 1 v Drop Cap A FARM PRODUCT COST TOTAL SUPPLY AND DEAMAND COST high coli COST