Discuss economies of scale and its importance to market types in Australia

Discuss economies of scale and its importance to market types in Australia

Assessment Information

1. What are economies of scale? In what market types (i.e. perfect competition, monopoly, oligopoly,
monopolistic competition) are economies of scale most important? Why?
2. Based on the article below and some limited research what type of market form you think the
airline industry in Australia was in 2002/03? Support your answer with reference to theory.

Answer preview:

Word: 1,600