This week in our DP Economics class, we investigated the factors shaping Growth and Income Inequality. We also took a look at the impact of different Market Forms (Oligopoly, Monopoly, Monopolistic and Perfect Competition) in order to determine which one might be best as a generator of economic growth and greater equity in income distribution.
Each market form has different characteristics and assumptions; each market form has a different relationship to the concepts of Economies of Scale and the Law of Diminishing Returns.
To get started, we played a little game called “describe the diagram” where we were given short-run and long-run outcomes and one economist had to explain the outcomes while the other had to diagram it. This was not as easy as it sounds.
This got us ready to work together with our partners on the main evaluation: To what extent is our market form best suited to increase economic growth and reduce income inequalities? Want to know which market form is the winner? Students, faculty and staff are welcome to come to B5-G29 to find out!