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