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HI5003 - Economics for Business | Assignment

   

Added on  2020-03-01

8 Pages1454 Words38 Views
Running head: MONOPOLIES, DUOPOLY AND OLIGOPOLIES IN AUSTRALIA Monopolies, Duopolies and Oligopolies in AustraliaName of the StudentName of the UniversityAuthor note

1MONOPOLIES, DUOPOLY AND OLIGOPOLIES IN AUSTRALIA Table of ContentsIntroduction......................................................................................................................................2Summary of the Story......................................................................................................................2Economic theories and concept.......................................................................................................3Monopoly in Australia.................................................................................................................3Oligopoly.....................................................................................................................................4Duopoly.......................................................................................................................................5Recommendation.............................................................................................................................5Conclusion.......................................................................................................................................5References........................................................................................................................................7

2MONOPOLIES, DUOPOLY AND OLIGOPOLIES IN AUSTRALIA Introduction Monopoly, duopoly and oligopolies all are common form of markets exits in aneconomy. Monopoly is considered as the broadest games among these three forms. There arelong policy debate regarding the existence of perfect competition and absence of it in the pureform. Presence of innumerable number of buyers and seller, selling identical products is a mythand so is the concept of perfect competition. Monopoly structure is found to exist when singlesellers sells some unique product. In Australia market concentration is observed insupermarkets, in the financial sector concentration is among the four major banks and onemonopolist Telstra in telecommunication industry. Summary of the Story The large players in the market easily attract investments and investors are always eagerto in these sectors because of huge possible returns. Often regulators and government supporttheir expansion to boost economic growth. However, now the opportunities for big business arefading because of a change in focus of the Australian Competition and Consumer Commission(ACCC) that now become more aware of about the behavior of large player toward othersuppliers and consumers. This weakens some oligopoly structure in the Australia. On the otherhand, a possible break down of quasi monopoly structure of Telstra in telecommunication isrealized. Once entry barriers controlled by National Broadband Network (NBN) are relaxed, theindustry will have four other big players as suggested from the market research by MorganStanley (smh.com.au 2017). The removal of monopoly structure will attract new serviceproviders to the broadband industry reducing prospect returns of Telstra in the business. Thestatistics revealed by Stanley shows new service providers entering in the business need 100,000

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