Scenario – A few weeks ago the editor in chief of a regional newspaper offered you the…

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A few weeks ago the editor in chief of a regional newspaper offered you the opportunity to write

weekly columns on economic issues for Saturday editions. Since then you have been actively analysing

different aspects of the economic impacts of different events using your knowledge in Economics. As

a Bachelor of Commerce/Business degree graduate intending to apply for a management trainee role

in a large business in the near future, you are particularly interested in the microeconomics concepts

of market power and economies of scale.

Last Saturday you published a column about market power. In your column “Market Structure and the

Firm Behaviour”, you discussed the differences and similarities between perfect competition and

monopoly markets and provided an example for each type of market structures. One of the example

companies you discussed in this article was Coles supermarkets. A few days after publication of your

column you received an email from the secretary of the Economic Society of Australia – QLD branch

congratulating you on your last influential article, inviting you to be a keynote speaker in the near

future event called Young Economist Speaker, a conference to be held in Brisbane. You are quite

excited about this opportunity and accept the invitation. You find out that the Young Economist

Speaker series this year focuses on “Market power: The relative bargaining powers of suppliers and

customers”. The conference secretariat informs you that the organisers are particularly interested in

your insights relating to supermarkets in Australia, considering the relative power of the supermarkets

and their suppliers and customers.


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