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Monopoly power

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Identify, from media reports on Australian industry, an example of a firm that has significant monopoly power. Identify the inefficiencies in outcomes that arise, or would arise, if the firm was free to exercise that power. Finally, explain how government intervention is used, or may be used, to curb that power and provide a more efficient outcome for the economy....

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Question Preview:

Identify, from media reports on Australian industry, an example of a firm that has significant monopoly power. Identify the inefficiencies in outcomes that arise, or would arise, if the firm was free to exercise that power. Finally, explain how government intervention is used, or may be used, to curb that power and provide a more efficient outcome for the economy.

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Monopoly power is referred to a state that allows the business firm to gain the ability to increase the prices. It also helps in excluding the competitors and ensures that better economic development is being provided to the business. In terms of economic context, monopoly is referred to the company that is considered as a single seller. The monopoly of business also helps in improving the market power so that better opportunities can be attained. In order to have a better understanding of the concept, Australia Pacific Airports Corporation is considered as an organization (Brown, 2017). In the present study, the learning about monopoly power will be provided with the support of media and industry reports. Government intervention is also a critical aspect that will be evaluated in the present study.

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