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Microeconomic Theory

Semester 2 coursework: Essay of 2000 words.Address ONE question below.1. Evaluate the costs and benefits to economic welfare of monopoly relative to perfect competition.2. What is Coase Theorem? Explain the relevance of each of the following for the applicability of the theorem: (i) well defined property rights (ii) low transaction costs.3. How can the Pareto efficiency of free trade be reconciled theoretically with the losses that free trade causes to unskilled workers in rich countries?You should ensure that your answer contains:– A summary of the key features (assumptions, results, and insights)– A critical reflection of theory and other relevant literature.– Critical evaluation of main issues/challenges.– Reference to textbooks and other journal articles to support your evaluation and critique.You should explain in your own words and avoid over-quoting.When using text directly from the journal article ensure you reference your quotations correctly in order to avoid plagiarism.

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