Economics Tuition – Video by Economics Focus
This e-learning video developed by JC Economics Tutor Simon Ng of Economics Focus targets the topic of Cost of Production to find out how three factors, namely input cost, consumer incomes and market concentration ratio, affect the production equilibrium of firms. Students are expected to understand the considerations, like cost conditions, that affect the price and output levels set by the firms, in order to achieve the main aim of profit maximization.
Discuss the relative significance of input cost, consumer incomes and market concentration in influencing firms’ pricing decisions. 
Analysis of The Question
The focus of this question is to explain how the above identified variables that will affect the price and output decisions.
However, the question requires a systematic order of discussion where there is a need to explain the factual information on how price and output is determined so as to facilitate the evaluation on how the stated variables will influence the price and output decisions.
Different perspectives must be derived through paragraph and sub-paragraphing techniques and connected systematically to conduct a persuasive explanatory.
Source of Information
Part of knowledge needed for this question:
- Characteristic of imperfect market condition
- Characteristic of behaviours of monopoly, oligopoly and monopolistic competition
- Concept of profit maximization
- Diagram on how price and output is attained for imperfect market
- Explanation on how the input cost will affect price-output decision (imperfect market structure)
- Explanation on how the change in income will affect price-output decision (imperfect market structure)
- Explanation on how the market concentration ratio will affect price-output decisions(collusive oligopoly, non-collusive oligopoly, monopolistic competition)