Economic growth-Australian economy

Economic growth is the increase in the market value of the goods and services that an economy produces over time. The percentage rate change in the real gross domestic product (GDP) is equal to economic growth.

Long-term determining factors of economy growth

There are factors which affect economic growth in a country. The factors can either be short term or long term. Determinants of long-run economic growth include productivity, demographic changes, and labor force participation among others. Government spending also have a great impact on the economy.

Australian telecommunication market regulations

Prior to 1991, Telecom Australia (currently known as Telstra) was the only telecommunications services provider in Australia. In 1991 legislation was passed allowing duopoly competition following the Davidson inquiry recommendation . Optus Communications became Australia’s second general telecommunications carrier. The law guaranteed Optus Communications access to Telstra’s existing infrastructure on reasonable terms. After 1997, Australian telecommunications market allowed any telecom company willing to purchase a carrier license to enter. The government deregulated the telecommunication market to increase competition and promote economic growth.

Strategies put in place to reduce environment pollution

Economic growth comes with high environmental costs. Economies struggle to achieve environmental friendly  outcomes most of the  times. This is because our economic system builds on linear principles that focus on throughput, optimization and cost-benefit efficiency . Government has therefore come up with strategies to help reduce carbon emission to the environment. The strategies put in place also help boost the economic growth as government will spend less. There are two strategies that a country might adopt — a carbon tax or a cap-and-trade system. The carbon tax approach would reduce emissions by providing a strong incentive to be more efficient and use cleaner energy sources. The cap-and-trade system on the other hand sets an overall cap on emissions and then auctions off the right to emit carbon. The cap-and trade system further allows these emission rights to be bought and sold in carbon market. 

Market structure used in the AGR sector

Market structure refers to nature and competition within a market. There are different types of market structure which include monopoly, perfectly competitive market, monopolistic competition, and oligopoly. Some factors that influence the type of market structure include the number of sellers and buyers and the nature of products. Each of market structure has its own advantages and disadvantages which subsequently affect economic growth of a country. In the supermarket industry, Coles and Woolworths dominate the Australian grocery retail (AGR hereafter) sector. It should be noted, the two supermarket giants operates in an oligopoly market structure. Firms that operate under this market structure have some powers of price setting. In addition, the firms has product differentiation aspect. There are also certain barriers in entering the market as Coles and Woolworths have undoubtedly solidified their position in the market.

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