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Monopolies, Duopoly and Oligopolyes in Australia

   

Added on  2020-03-04

9 Pages1200 Words386 Views
Running head: ECONOMIC ASSIGNMENTMonopolies, Duopoly and Oligopolies in AustraliaName of the StudentName of the UniversityAuthor note

1MONOPOLIES, DUOPOLY AND OLIGOPOLIES IN AUSTRALIATable of ContentsIntroduction................................................................................................................................2Essence of the story....................................................................................................................2Economic theories and concept..................................................................................................3Oligopoly................................................................................................................................3Duopoly..................................................................................................................................4Monopoly...............................................................................................................................4Recommendation........................................................................................................................5Conclusion..................................................................................................................................5References..................................................................................................................................7

2MONOPOLIES, DUOPOLY AND OLIGOPOLIES IN AUSTRALIAIntroductionNumber of buyers and sellers define the characteristics of any market. Fewer thenumber of sellers larger is the market power of the seller. Supermarkets generally contain fewlarge sellers. Hence, one can expect an oligopoly structure for the supermarkets. In the paper,supermarket structure for grocery sellers in Australia is observed. Two big retailersWoolworth and Coles are almost successful in eliminating most of their rivals and thus forma duopoly. The power of these two retailers is expected to influence the economic health ofAustralia.Essence of the story Chief of small business council, in a published article gives indication of possibleduopoly in grocery business. While giving own opinion concernment of Shop Distributiveand Allied Employees Association (SDA) is linked with the fact (NewsComAu 2017). Thereare there big organizations that greatly influence economic condition of Australia. The highor increasing penalty rate leads to closure of small business. This provides strength to largeretailers. Thus the attrition policy of SDA indirectly assist the duopoly structure in theeconomy. Relaxation of regulation by SDA helps Woolworths and Coles to increase theirmarket share and boosts SDA’s membership. Therefore, Woolworths and Coles need notfocus much on increasing their market share by improving their quality of service orproviding additional discount or facilities to the customers (Heffernan 2017). The costadvantages enjoyed by them and increasing attrition are enough to expand their business.In the article, the chief has rejected the common suggestion for the supermarkets suchas acting as pharmacies or arranging Lotto tickets sell. These suggestions are expected to

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