Australia: A nation of cash poor millionaires

Running head: ECONOMICS
Economics
Name of the student
Name of the University
Author note

1ECONOMICS
Table of Contents
Answer 1....................................................................................................................................2
Answer 1.2.................................................................................................................................3
Reference list..............................................................................................................................6

2ECONOMICS
Australia: A nation of cash poor millionaires
Answer 1
Aldi is the famous supermarket chain which is based in German which is also the
supermarket discounter. The report states that Aldi has been operating in Australia where
people are been suffering from the slow wage growth and rise in the cost of living. The
market is mostly for the cash strapped consumers. The company have known to transform to
one of the successful and valuable business chain which is known to pay huge amount of
turnover. The high quality range of goods that are sold here was known to be limited to the
basic selection of goods that are purchased in large quantities. The market structure of Aldi is
the oligopoly market structure. The supermarkets are usually having the characteristics of
competitive oligopoly. Oligopoly is a form of imperfect competition. It is known to prevail
when there is presence of few firms or sellers in the market that are known to produce
products. When there are two or more markets in the economy, oligopoly is said to exist. The
characteristics of the oligopoly market are:
Interdependence : another feature of oligopoly is the dependence in decision of
making the firms which is compromising the industry. The second feature in case of
oligopoly market is that there is advertisement cost. Oligopoly markets have great importance
of advertising and selling costs under the conditions of the oligopoly. The firms in case of
oligopoly market structure have to incur a good deal of costs on advertisements and also on
other measures in case of sales promotion. Another feature of the oligopoly market structure
is the presence of competition. As there are only few sellers under the oligopoly market
structure, therefore, each of the seller had to keep alert and keep a close watch over the rivals
for the counter move. Since there is a keen competition in the oligopolistic industry, there
will be no barriers to enter or exit from it. Although in case of long run, there will be some