In: Economics
1. Write an essay in which you discuss the application of the structure, conduct and performance paradigm to the four market structures (perfect competition, monopolistic competition, oligopoly, and monopoly.
2. Assume the sale of human organs is legalized and a free market develops. Explain the impact each of the following would have on the equilibrium price and output in the market for kidneys.
A. Incomes decrease for potential buyers of kidneys.
B. A new form of kidney dialysis is developed that can be taken as a pill at home once a month.
C. The government taxes anyone that sells a kidney. The person that sells the kidney must pay the government half of what he or she earns by the sale of his or her kidney.