Economics 7136/1 June 2021

The paper explores microeconomic themes focusing on market dynamics and failure. Section A examines pharmaceutical industry challenges, such as oligopoly structures, patent monopolies, and pricing issues. Topics include market inefficiencies, economies of scale, healthcare expenditure, and consumer impact. The ethnic pay gap is analyzed, addressing wage disparities, labor market participation, government policy interventions, and economic equality. Section B discusses perfect competition, the effects of technological change, cross elasticity of demand, rational decision-making, and the implications of economies of scale. The influence of ownership structures on firm behavior and performance is also highlighted, integrating theoretical and applied economic perspectives.