Micro Economics | Monopolies | Duopoly | Oligopolies
Added on 2020-03-02
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[Monopoly, Oligopoly & Duopoly in Australia][Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.]xxxxxxxx
IntroductionEconomics is the study of financial aspects of a country as a whole or the study of the resourcesthat an individual have in monetary terms. Economics can be divided into two parts i.e. Micro-economics and Macro-economics. Micro-economics is study of economic at a small or anindividual level[ CITATION Mer13 \l 1033 ], forexample: when a study of a single person incomeis considered or the study of economic resources that a particular single firm has is known asMicro-economics. While the study of a nation’s income as a whole is known as Macro-economics[ CITATION Jeg11 \l 1033 ]. Here in this assignment we will discuss the topic ofMonopoly, Duopoly and Oligopoly in Australia. Monopoly is an industry where there is only asingle firm with lots of buyer. Duopoly is a situation where a small number of companies mostlytwo, dominates the entire market. Oligopoly is again a situation where there is the number ofbuyers is high as compare to the number of sellers. Australia has a diversified market, it has alarge number of firms, but every country does have monopolistic, duopolistic and oligopolisticfirms. In this assignment we are going to discuss these topics in detail.Critical AnalysisHere we will discuss the topic of Monopoly, Oligopoly & Duopoly in Australia, in detail.Monopoly is a situation where there is only a single seller of a product with a large base ofbuyers (Monopoly firm is mostly owned by a government). An example of a monopolyfirm/industry in Australia is: Australian post, Trains & Water services. This means that thesefirms are, only allowed to undertake their business services with no other competitors in theirrelative field of operations. Now if talk about Oligopoly firm of Australia then it would be, theColes and the Woolworth. Both these Australian firms have a dominant power in the market theyoccupy around 75% of the Australian supermarket chains[ CITATION Har05 \l 1033 ]. An exampleof Duopoly will be the sonic health and the primary health care, they together holds a marketshare around 77% in Medicare industry of Australia. A nation or a country is dependent on itsmarket, if any country has a market that is restricted to few sellers then it won’t be able to earn agood amount and their earnings may sound profitable but they will always be limited[ CITATIONAda16 \l 1033 ]. Below is the Graph for three of the above mentioned market forms:
Y MC P Q E O MR D XAbove graph shows the Profit maximization under monopoly firm. In the above graph amonopoly firm will produce maximum profit where MR=MC.[ CITATION Bru15 \l 1033 ] D PA A PB B O D* MRA MRBThe above model was introduced by[ CITATION Cou00 \l 1033 ]in duopoly model he emphasizedthat each firms maximizes profit, market demand is liner, each firm decides its price bydetermining others firms prices
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