Economics Assignment Sample

Added on - 21 Apr 2020

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Running head: ECONOMIC ASSIGNMENTEconomic AssignmentName of the StudentName of the UniversityAuthor Note
ECONOMIC ASSIGNMENT1Table of ContentsIntroduction......................................................................................................................................2Number of sellers.............................................................................................................................2Market Knowledge..........................................................................................................................2Ease or difficulty of entry or exit from the market..........................................................................3Type of the Product.........................................................................................................................3Short run and long run profits..........................................................................................................4Price determination..........................................................................................................................4Non – price competition..................................................................................................................5Conclusion.......................................................................................................................................6References........................................................................................................................................7
ECONOMIC ASSIGNMENT2IntroductionIn economic market defines an exchange relation between buyers and sellers. Differentforms of market exists depending on the extent of competition and pricing mechanism.Commonly known forms of market are perfect competition, monopoly, monopolistic competitionand oligopoly. Each has its own characteristic. The report describes a specific form of marketstructure in Australia. The market structure of Australian airline structure industry is chosen forthis purpose. Specific characteristic of one of the leading airline company, Qantas is considered.Number of sellersThe aviation industry in Australia presently has a number of airline companies operatingin the country and across the globe. The geographical position of Australia and Australia’sthrives towards economic growth gives aviation industry immense importance. The majority ofvisitors in the country come by air, as the country is an island. There are three main kinds ofairlines in Australia – domestic trunk airline, international airlines and regional airlines(aph.gov.au 2017). The major airline players in Australia are West Australian Airways, EasternAustralia Airlines, Australia Air Express, Qantas, Virgin Blue, Air Link, Skytrans Airlines andMaroomba Airlines. With few large players in the airline industry, the market structure is similarto an oligopoly market structure.Market KnowledgeIn the oligopoly market, buyers and sellers possess imperfect knowledge about themarket. There are strategic interdependence among sellers in oligopoly market (Nicholson andSnyder 2014). In the domestic airline industry, Qantas faces extensive competition with VirginBlue, Impulse Airlines and Ansett Australia. When one of the airline companies reduces ticket
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