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Economics Assignment: Oligopoly

   

Added on  2020-05-28

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Running Head: ECONOMICS ASSIGNMENTEconomics AssignmentName of the StudentName of the UniversityAuthor note

ECONOMICS ASSIGNMENT1Table of ContentsIndustry in Australia representing Oligopoly..................................................................................2References........................................................................................................................................6

ECONOMICS ASSIGNMENT2Industry in Australia representing Oligopoly Oligopoly market is defined as one where the market is dominated by a small of seller.The relatively small number of firms in the industry is attributed from a high entry barrier fornew entrants. Entry barriers in the oligopoly industry is in the form of need of large-scalefinancial resources, government regulation and patents. Presence of few sellers results in a highmarket concentration. There are mainly non-price competition among the few firms in theindustry. There are certain sectors both in develop and developing countries. Australia, oneleading economy in world has some concentrated markets. One major sector having high marketconcentration is banking sector of Australia.There are four dominant players in the Australian banking industry. These are fourdominant players in the banking sector are Westpac, Australian and New Zealand Bankinggroup, Commonwealth Bank and National Bank. Australia is not the only nation havingoligopoly in its financial sector. In Norway, three largest banks in the nation have 84% share inthe market. For Finland, the percentage share of major banks is 85% (Beatty & Liao, 2014). In the oligopoly market, there generally exist a high barrier to entry. The banking sectorin Australia has significant entry barriers. The entry barriers in the banking sector is highest ascompared any other sector. In addition to regulatory barriers and huge capital requirement,considerable market power enjoyed by the existing big four players also work as an entrybarriers in the concerned industry (abc.net.au, 2016). Already existing big player possess biggestthreat to the new entrants. Almost in all financial transactions, deposits or holdings the four major banks are farahead of the other participants in the banking industry. In terms of total resident assets, the share

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