Golden Mile Resources Ltd: Industry Sector Material Analysis

Running head: ECONOMICS 1
Golden mile resources ltd (Industry sector Material)
Name
Affiliation
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OMICS 2
Introduction
(1)
a) Name of business - Golden Miles Resources Limited located in Australkia 1B/205-207
Johnson St. Fitzroy, Victoria, 3065 dealing in mining.
b) The business deals in mining and production of nickel and gold exploration.
c) Other companies are majorly the customers for the business since it’s a large scale
exploration company.
d) Main customers are located in Western Australia.
e) Sunrise Dam Gold mine, St Ives Gold mine, South Kalgoorlie gold mine, Sandstone gold
mine are some of the main competitors with golden mile resources limited in Australia.
f) The industries are located in Western Australia.
g) In case Golden Miles Resources shares 10% of the market and the largest producer shares
50% then the remaining mines are likely to take 5% or less since the company is among
the largest producers of gold and nickel (Haron, 2016).
Basing on the percentage shared by each of the mines in the market, the competitive
environment is said to be close to perfect completion. This is simply because the producers
within sector of gold and nickel mining are quite many especially in Australia and China.
The company is located in Western Australia and in this region, several companies dealing in
mining of similar materials are many. For example mines like Brightstar gold mine, Stawell
gold mines and many more are found within the same area and so much competition is
observed on market. Also, the buyers of these minerals are many all over the globe. This is
because many countries do lack such minerals yet they are very important in molding of

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OMICS 3
gold-made materials. A perfectly competitive market means the number of sellers is as many
as the number of buyers in the market.
However, Golden mile Resources is among the widely known company within the metal and
mining industry all over the world. This makes it partly a monopolist since its products are
highly demanded compared to other companies in Australia. Though this does not push it to
be in a monopoly market as there exists on the companies producing similar materials in the
country. For a company to be called a monopolist, it should portray some unique features of a
single company taking over the market and also determining the price of commodities.
As per the available statistics there exists limited or few available substitutes for Golden Mile
Resources Ltd. low profit earning companies produce the few substitutes which are present.
when setting prices, Golden mile Resources puts into consideration the costs of production,
the competitor's prices and the consumer income. Therefore the costs Golden mile
Resources products vary basing on the consumer segments and there overall economic
welfare
Therefore the demand curve facing Golden Mile Resources Ltd is relatively inelastic.
meaning that a slight increase in price has less impact on the total quantity demanded mainly
due to its overall larger market share and strong reputation
Given that the overall demand is relatively inelastic, the firms sometimes mark up its price
above marginal costs to achieve specific objectives in the market
(2)Production costs and scale