Economics Report - Assignment

Running head: ECONOMICS ASSIGNMENT
Economics Assignment
Name of the Student
Name of the University
Author Note

1ECONOMICS ASSIGNMENT
Table of Contents
Introduction:....................................................................................................................................2
Story’s Essence:...............................................................................................................................2
Economic Interpretations:................................................................................................................3
Policy Recommendations:...............................................................................................................5
Conclusion:......................................................................................................................................5
References........................................................................................................................................7

2ECONOMICS ASSIGNMENT
Introduction:
Economics as a subject deals with market and market dynamics among other concepts. A
market is generally known to be a place where buyers and sellers interact in order to maximize
individual as well as overall welfare. Markets, however, can be of different types based on the
nature of commodity, number of buyers and sellers and other determining factors. A perfectly
competitive market is an extreme example of free market with no barriers and uniform
distribution of market power among buyers and sellers (Kirzner 2015). However, there are
obvious exceptions to this hypothetical market namely, oligopoly, monopolistic competition and
monopoly. These are generally examples of imperfectly competitive ones, monopoly being the
other extreme form of market. The report tries to analyze the market type that usually prevails in
supply of gas in Australia. To study the market type and the consequences of that market on the
concerned industry the report takes reference of the article named, “Gas supplier monopoly
pricing hits domestic users hard: ACCC”, by Stephen Letts (Abc.net.au, 2017).
Story’s Essence:
Monopoly market implies the presence of single seller or seller group in an economy with
innumerable buyers, thereby implying that the seller enjoys almost all of the market power and
price making powers. The article takes into account the presence of monopoly pricing powers of
the eastern state suppliers of gas and operators of pipelines. It tries to address the issue of
misusage of this monopoly power by these gas providers in the country (Gillespie 2014). The
assessment conducted by the Australian Competition and Consumer Commission shows the