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t economy is the presence of competition, where a number of key players operate in the same marketing sector, offering the consumers a large variety of choices. Another very important feature of a successful economic structure is a decentralised market, where the government’s role is to regulate the quality and safety of the products offered, and also to monitor the behaviour of the business firms in respect to curbing various malpractices like undue price rise, or the manipulation of prices to gain the maximum profits. Market structure of a country is founded on the number of consumers and sellers that are available there, and the market price is related to the negotiating power of these consumers and the sellers in determining a price for the goods bought. According to the economists, there are four major types of market structures that are seen worldwide. These are: markets which show perfect competition e.g. an auction market, free software market, and the stock exchange; a market that shows monopolistic competition e.g. markets for toothpastes, soaps, shampoos and other similar products; oligopolistic market with few players within the same retail sector e.g., the grocery market in Australia; and the monopoly market e.g., The British East India Company and the De Beers diamond mining firm. In the present scenario, when globalisation has elevated the scope for competitions in the worldwide marketing arena to an unprecedented level, we are seeing more of government regulated oligopolistic markets within the industrialised nations, where only a handful of firms are being given licenses to operate in a particular sector. The Australian grocery market is a good example of an oligopolistic market, where there are only four major players, which consist of Woolworths, Coles, Davids, and Franklins. This study will examine the Australian oligopolistic market, with a focus on how it functions, its implications and the future trends.
Oligopoly, in economics, refers to
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Domestic utilities are the services provided to the residents. These services are either provided by the organizations run by the government or by the organizations that are privately run but they are regulated by government authorities. Services included in domestic utilities; provision of water, oil, gas and electricity.
There are numerous stores in the UK estimated to be about 41,000 convenient stores. Majority of these are independent hence dominate UK grocery and food retailing. Due to the strategies applied by the LGRs like having large stores hence a wide range of products and relatively low prices.
Many authors have conducted researches to determine which sector is dominant in housing sector as well as to identify the primary reasons behind these changes. Some of the most renowned researched covering these aspects have been presented in the subsequent part of this paper.
Fiscal and monetary policy options 8 2.5. Corporate earnings and industrial sectors to watch out for 9 2.6. Risks 9 3. Conclusion: Effects on financial markets 10 Reference List 11 1. Summary Australia has a stable financial system and a strong economic position in the world.
The Australian retail grocery market is characterised by low growth in terms of population, comparatively small market, along with large distances. These unique features of the industry have created the requirement of ensuring economies of scale for the retailers which operate in the national level in order to deliver food as well as other grocery products to the customers throughout the market in a reliable manner.
The UK grocery market was worth 119.8bn in 2004, a growth of 4.2 per cent over the previous year according to IGD Research. The research firm forecasts that the market value will rise to 133.5bn by the end of 2009, with much of the growth attributable to inflation.
Average cost is the total cost divided by the number of units produced. Before I go further I would like to clarify that firms maximize profits by considering the marginal cost, not the average cost. Secondly as the figure below illustrates
the demand curve in an oligopoly will be a "Kinked" demand curve which may be similar to the traditional demand curves in the Perfect competition, as they are downward-sloping but it will have a kink or a bend.
In addition, this paper will tell Oligopoly theory gives us a rather confused picture of the relationship between economic profits and market structure" Has empirical investigation of this relationship helped us to clarify the picture? Why might it be argued that it takes only a few rivals competing in the same market to achieve an outcome very close to that of large numbers 'perfect' competition? Does it make much difference if the rivals can cooperate with one another?