It has long been recognised that most industries in Australia are imperfectly competitive, and the government has a responsibility to ensure competition and protect consumers. a. What is market concentration? What are the possible consequences of a higher market concentration ratio? b. What are the reasons that some markets are dominated by only a few large firms? c. Explain how elasticity can allow suppliers with market power to generate higher profits. d. List and explain forces that can decrease market power.
It has long been recognised that most industries in Australia are imperfectly competitive, and the government has a responsibility to ensure competition and protect consumers. a. What is market concentration? What are the possible consequences of a higher market concentration ratio? b. What are the reasons that some markets are dominated by only a few large firms? c. Explain how elasticity can allow suppliers with market power to generate higher profits. d. List and explain forces that can decrease market power.
Chapter9: Monopoly
Section: Chapter Questions
Problem 12SQP
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Transcribed Image Text:It has long been recognised that most industries in
Australia are imperfectly competitive, and the
government has a responsibility to ensure
competition and protect consumers.
a. What is market concentration? What are the
possible consequences of a higher market
concentration ratio?
b. What are the reasons that some markets are
dominated by only a few large firms?
c. Explain how elasticity can allow suppliers with
market power to generate higher profits.
d. List and explain forces that can decrease market
power.
е.
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