The article discusses the monopolistic market in Australia while giving examples from other countries that imperfect competition has impacted negatively. For instance, Wright (2017) talks about the impacts of Standard Oil's monopoly in the U.S. that not only affected oil prices in America but also across the globe. In the context of Australia, Coles and Woolworths are the two business establishments that have a duopoly in the grocery market. In a monopolistic market, businesses can remarkably increase their profit margins without fearing the reactions of their rivals. The author has accurately used economic concepts to write the article. He must be an experienced business writer since he writes in a language that delivers the message home, especially to those who care about understanding economic trends in the contemporary world.
Second Task
Some of the microeconomic topics implicit in the article include market structure, profit maximisation of firms and imperfect competition. The theory of imperfect competition, which is evident in the article, describes a market structure that has many producers that sell products that are differentiated from each other concerning the quality as well as branding. In the context of the article, Wright (2017) has illustrated how some firms such as Coles and Woolworths have dominated the market in Australia because they offer differentiated products. The article is well written because it clearly provides examples of economic impacts of firms in monopolistic markets
Third Task
From the article, I have learned two things about microeconomics. First, I have learned that product differentiation is an important aspect when it comes to imperfect competition in the contemporary world of business. Second, I have learned that firms can utilise information technology to gain a competitive advantage in the long-term.
Reference
Wright, S. 2017. Opinion: Australia paying a high price for lack of competition. The West Australian. [Online]. 25 September. [Accessed 4 December 2018]. Available from: https://thewest.com.au/opinion/opinion-australia-paying-a-high-price-for-lack-of-competition-ng-b88605611z
