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The Difference Between Monopoly vs. Oligopoly

   

Added on  2021-05-30

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Running Head: OLIGOPOLY, MONOPOLY OR DUOPOLY STRUCTURE IN AUSTRALIAOligopoly, Monopoly or Duopoly Structure in AustraliaName of the StudentName of the UniversityCourse ID
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OLIGOPOLY, MONOPOLY OR DUOPOLY STRUCTURE IN AUSTRALIA1Table of ContentsIntroduction......................................................................................................................................2Brief article story.............................................................................................................................2Article insights with economic theories..........................................................................................3Oligopoly in the banking industry...............................................................................................3Effect of banking industry oligopoly...........................................................................................4Recommendation.............................................................................................................................6Conclusion.......................................................................................................................................6References........................................................................................................................................7
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OLIGOPOLY, MONOPOLY OR DUOPOLY STRUCTURE IN AUSTRALIA2Introduction In Australia, imperfectly competitive market structure is found to exits in different areas.In case of natural monopoly such as distribution of electricity and public utilities a single firmserves the entire market. The industry like telecommunication, grocery supermarkets, airlinesand in few others few large players dominate the market giving it structure of an oligopolymarket. In some sectors like pharmacies and banking competition is prohibited by regulation(Bloch and Bhattacharya 2016 ). As a result, revenue and market share are concentrated in handsof few large firms. The paper discusses oligopoly structure in Australian banking and its likelyconsequence on people and economy. Brief article story The banking industry in Australia highly concentrated. By driving out competition, thefour major banks captures lion share in the industry. As reported by Australian Competition andConsumer Commission (ACCC) the banking structure in Australia has become a four pillarsystem with a major players having huge power to influence production and price. With this thebaking industry had status quo of an oligopoly market, a market largely dominated by some largeplayers. There are several features of retail banking indicating that, the industry structure is farfrom competition. The big banks in Australia have continued to maintain a high profit margin fora considerable long period of time (thenewdaily.com.au 2018). The smaller players supplying arelatively small range of goods and services are unable to challenge the position of the largeplayers in the industry. The report also mentioned that largest player in the industry hassuccessfully maintained a large profit margin with presence of significant entry barriers in theindustry.
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