Monopolies - Duopoly - and Oligopolies in Australia - myassignmenthelp

Question: Discuss about theMonopolies,Duopoly, and Oligopolies in Australia. Answer: Introduce The firms which are operating in the highly concentrated markets are considered as more profitable2. But if the firms operating are the monopoly, they are likely to showcase better results. As per the research studies, it has documented that the firms operating with the monopolistic powers within the Australia exercise a better position in terms of the investment in the research and innovation. The Australian monopoly companies are also able to better develop as compare to the smaller competitors. This Journal was published by the Centre for International Finance and Regulation8. It showed that the monopolies which have one player dominating the market are able to succeed in the Australia. Likewise, the duopolies which have two players operating and the oligopolies which have a small number of producers and sellers are able to perform better in the concentrated market of Australia in comparison to the competitors operating in the markets. The Economic Analysis The Australian market has the diverse market of opportunities. But, in order the drive success for the national economy it is defined with the structure of its markets6. There are different types of markets and each of them has different characteristics while operating in the market. The main market structures are divided into-: 1) Perfect Competition-: the perfection competition market is defined on the basis of the many buyers and the sellers. As per the classical theory, it defines and classifies perfection competition with infinite buyers and sellers. Due to the multiple buyers and sellers operating, it is difficult for the one particular firm which 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 the firms 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. 2) Monopoly-: The monopoly market has opposite characteristics of the perfect competition. In a pure monopoly, there exists only one particular producer of the good and services7. There is no substitute for the product. Due to this, the single producer and seller are able to dominate the market and influence the pricing. There is low competition within the firms and profits are derived on the basis of the consumers willingness to purchase the particular product at the producer price. This type of market structure is possible due to the selling of the patents products and services, lack of close substitutes and on account of the high barriers. 3) Oligopoly -: Oligopoly market exists with the few producers that are able to dominate the market in terms of pricing, products, and production5. They are selling similar products but are slightly differentiable. The difference in between the monopoly and the oligopoly is that they do not have the same pricing power as of the monopolists. Due to the government regulation, the oligopolies can collude and can set prices in a similar monopolist way. 4) Monopolistic Competition-: It is a combination of the monopoly and of the perfect competition. There are many buyers and sellers, but the sellers are producing differentiable types of similar products. Due to this, 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 a single 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. Due to the global competition and looking at the Australian economy, the monopoly, duopoly and the oligopoly are able to thrive in the market as they are able to fix either the pricing or the quantity of supply. Due to the low degree of competition within the Australian market, along with the pricing strategies and with the high profit, a performance of the firm, the monopolistic, oligopoly, and the duopoly are able to reap benefits from the market. Viewpoint As per my viewpoint and analysis, the monopoly market structure along with duopoly and the oligopoly can fairly exist in the Australian market. Due to the lower government regulation, lower degree of competition and numerous buyers the monopoly market framework can work profitably. For the key players the actions which are recommended are the-: As it is difficult to differentiate in between the market and the firm which co-exist within a given framework, the monopolists need to identify a specific strategy either to exercise their power on pricing or with the quantities of supplies. The products and services provided should not have close substitutes and the monopolists can create high barriers to entry by reaping economies of scale. The other ways are by creating patent licensing, technology superiority, and control of the essential and rare resource while selling in the market. As a price maker, it does not mean the monopolist can control both the price and quantity of supplies. Either fix the supply or dominate the market with the pricing factor. The other variable will be dependent on the given fixed variable which will exist due to the market forces. For the policy makers the viewpoint will be-: They can also formulate policies by regulating prices3. 3J. Baker, 'The Place of Science and Technology in the Wise Management of the Great Barrier Reef', in E. Wolanski (ed.), The monopolist power can be through government regulation. The policy makers can utilize the use of the competition laws, in order to make industry competitive. If it's foreseen any market failures due the monopoly market structure is small with the comparison to an imperfection of policies, then no action is deemed. For the Oligopolies, the policy makers can try their best to avoid cartel and collusion formation and prosecute them under the competition laws. Conclusion The Australian economy is the free and liberalized economy with low prevalent market imperfection and government regulation. Due to this, the monopoly, oligopoly and duopoly framework can easily exist with the Australian market structure which can prove to be profitable1. Due to the fair degree of competition and pricing strategies the monopolist market structure can easily dominate the market. The chances for the firms operating with the perfect competition market have low profitability and sustainability due to the stiff competition faced, as they are selling identical products. To expand and explore the Australian market, the monopoly type of market structure can boom, due to the sharing of large market share and high profitability. 1Y. Aralawa,Zen Painting, trans. J. Bester, Tokyo, Kodansha International,2010, p. 75 References Arakawa, Y.,Zen Painting, trans. J. Bester,Tokyo, Kodansha International, 2010. Australian Bureau of Statistics, Queensland Office,The Economic Status of Migrants in Australia,Canberra, Australian Govt. Pub. Service, 2011. Baker, J., 'The Place of Science and Technology in the Wise Management of the Great Barrier Reef', inE.Wolanski,(ed.),Oceanographic Processes of Coral Reefs: Physical and Biological Links in the Great Barrier Reef,Boca Raton, CRC Press, 2013, pp. 14-20. Blackledge, A.and A. Creese,Multilingualism: a Critical Perspective,London, Continuum, 2010. Foley, J.M. (ed.),A Companion To Ancient Epic,Oxford, Wiley-Blackwell, 2009. Kring, A.et al., Abnormal Psychology,11th edn., Hoboken, NJ, John Wiley Sons, 2010. Sargent, M.J., P. Nilan and G. Winter,The New Sociology for Australians,4th edn., Melbourne, Longman Australia, 2007. The Cambridge Companion to Postmodernism,Cambridge, U.K., Cambridge University Press, 2004.