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Monopolies, Duopoly, and Oligopolies in Australia- Report

   

Added on  2019-11-29

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Monopolies, Duopoly, and Oligopolies in AustraliaStudent NameStudent IDUniversity Name

Monopolies, Duopoly, and Oligopolies in Australia IntroduceThe firms which are operating in the highly concentrated markets are considered as more profitable2. Butif the firms operating are the monopoly, they are likely to showcase better results. As per the researchstudies, it has documented that the firms operating with the monopolistic powers within the Australiaexercise a better position in terms of the investment in the research and innovation. The Australianmonopoly companies are also able to better develop as compare to the smaller competitors. This Journalwas published by the Centre for International Finance and Regulation8. It showed that the monopolieswhich have one player dominating the market are able to succeed in the Australia. Likewise, theduopolies which have two players operating and the oligopolies which have a small number of producersand sellers are able to perform better in the concentrated market of Australia in comparison to thecompetitors operating in the markets.The Economic Analysis The Australian market has the diverse market of opportunities. But, in order the drive success for thenational economy it is defined with the structure of its markets6. There are different types of markets andeach of them has different characteristics while operating in the market. The main market structures aredivided into-:1) Perfect Competition-: the perfection competition market is defined on the basis of the many buyers andthe sellers. As per the classical theory, it defines and classifies perfection competition with infinite buyersand sellers. Due to the multiple buyers and sellers operating, it is difficult for the one particular firmwhich influences the market, in terms of demand and pricing. Apart from the many buyers and sellers,they are selling identical products with no particular differentiation. Firms are price takers and all thefirms co-exist with the small market share.2Australian Bureau of Statistics, Queensland Office,The Economic Status of Migrants in Australia,Canberra, Australian Govt. Pub. Service, 2011, p. 320.6A.Kring, et al.,Abnormal Psychology,11thedn., Hoboken, NJ, John Wiley& Sons, 2010, p. 40.9The Cambridge Companion to Postmodernism,Cambridge, U.K., Cambridge University Press, 2004, p. 70.

Monopolies, Duopoly, and Oligopolies in Australia2) Monopoly-: The monopoly market has opposite characteristics of the perfect competition. In a puremonopoly, there exists only one particular producer of the good and services7. There is no substitute forthe product. Due to this, the single producer and seller are able to dominate the market and influence thepricing. There is low competition within the firms and profits are derived on the basis of the consumer’swillingness to purchase the particular product at the producer price. This type of market structure ispossible due to the selling of the patents products and services, lack of close substitutes and on account ofthe high barriers. 3) Oligopoly -: Oligopoly market exists with the few producers that are able to dominate the market interms of pricing, products, and production5. They are selling similar products but are slightlydifferentiable. The difference in between the monopoly and the oligopoly is that they do not have thesame pricing power as of the monopolists. Due to the government regulation, the oligopolies can colludeand can set prices in a similar monopolist way.4) Monopolistic Competition-: It is a combination of the monopoly and of the perfect competition. Thereare many buyers and sellers, but the sellers are producing differentiable types of similar products. Due tothis, in the monopolistic competition market structure, they are able to charge greater prices. 5) Monopsony-: The buyers can also differentiate the market system. In this type of market, there is asingle buyer for the product and services due to which they can influence the pricing4. 7M.J. Sargent, P. Nilan, and G. Winter,The New Sociology for Australians,4th edn., Melbourne, Longman Australia, 2007, p. 140.5J.M. Foley (ed.),A Companion To Ancient Epic,Oxford, Wiley-Blackwell, 2009, pp. 25-26.4A. Blackledge and A. Creese,Multilingualism: a Critical Perspective,London, Continuum, 2010, p. 10.

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