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Answer the following question ensuring that you apply economic principles or theory related to the concepts of
benefits, costs and market structure in which a firm operates to inform your analysis and support your decisions. Communicate your ideas with correct grammar, spelling and writing style and support your answer with diagrams and illustrative examples as necessary.
Question (10 marks)
Drawing on your knowledge of the theory of market structure – supplemented by appropriate media reports – comment on the statement of ACCC Chairman, Rod Sims, that the Australian finance sector is ‘a cosy banking oligopoly’ and explain what action could be undertaken to overcome the problems created by this situation.
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