Market Failure

Market power

Topic Menu
Content Contributors
Christian Bien Portrait_edited.jpg

Carys Brown

Learning Objectives

tutorial.png

one.png
Market Power
Slide1.jpeg

Market power is a term that describes the lack of competition between businesses which allows firms to influence prices. The level of influence over prices that a firm has is known as the 'degree of monopoly power.' 

A pure monopoly is a company that has no competitors, meaning it can raise prices without losing demand from consumers. There are very few of these present in Australia, yet Western Power is an example of a natural monopoly that is government regulated as it is important to have one provider of electricity to ensure continuity. 

Furthermore, another example of market power is oligopolies, which refers to a market with few dominant firms. For instance, Woolworths and Coles are dominant powers in the supermarket sector, making them an example of an oligopoly power. 

two.png
Government Policies
Slide2.jpeg

In order to reduce the presence of companies with large amounts of market power, government policies are in place to ensure consumers are not at risk of abuse of market power by firms. 

The Australia Competition and Consumer Commission (ACCC) ensures consumer protection and regulates and monitors monopolistic powers. 


two.png
Slide2.jpeg
two.png
Slide2.jpeg
two.png
Slide2.jpeg
two.png
Slide2.jpeg
two.png
Slide2.jpeg
two.png
Slide2.jpeg
Causes of Market Failure
Market power
Market Failure - Uncompetitive Markets
Externalities
Externalities - Models
Public Goods
Common Resources
Students Walking Up Stairs_edited.jpg

Registrations Now Open for Empowered Academy

A Free Student-Centred Revision Program

Logo-New-Large.png