The task for Assignment 2 is available below:Your task is to select a real-world market and determine which model of market structure studied you think would be most appropriate to describe that...

Australia Energy Market:
In December 1998, NEM launched as a wholesale spot market. It links the states of Queensland, New South Wales (including the Australian Capital Territory), Victoria, South Australia, and Tasmania. The Northern Territory and Western Australia are not linked to the NEM. NEM participating in bulk electricity generation transports electricity from generators to big industrial energy users and local power distributors in each region; these persons will deliver power to families and businesses.
The energy network, like the water and rail systems, is a natural monopoly. Because cable and ultra-wide networks are expensive, network services in a specific region can be offered more efficiently by a single (proprietary) supplier. The National Electricity Code (NER) sets economic regulatory frameworks for the electricity industry, allowing the Australian Energy Regulatory Authority (AER) to set a maximum income level for grid firms to charge for services provided.
A monopolistic market is a market system that resembles a full monopoly. Monopoly develops when one provider provides a certain item or service to a large number of consumers. The monopolist (or dominant business) controls the market in a monopolistic market, allowing it to regulate pricing and supply. Therefore we can say that the Australian Energy or Electricity market is monopolist.
A natural monopoly emerges when there are extraordinarily high fixed distribution costs in an industry. For example, electricity supply necessitates a massive infrastructure of wires and networks. For businesses to pay for infrastructure, these expenditures are called sunk costs, or costs that will not be recovered once incurred.
In typically, just one company offers the service since encouraging additional firms to enter the market may result in inefficiencies and losses for both the company and its rivals. Heavy infrastructure will have to be duplicated by competitors.
Characteristics of Australian Energy Market:
Sole Proprietorship:
A monopoly occurs when a single seller or corporation holds the whole market and offers things that have no close substitutes. Individual sellers have complete control over the product offering, therefore they rule the entire marketplace. A monopolist is a merchant or firm in an industry who controls the whole output.
Price Setter
Monopoly sets pricing as the industry's exclusive ruler. The seller sets the price of the goods since there are no other rivals in the market. Because there is no competition, no one can question the seller's pricing, which becomes the final market price of the product.
Barriers to entry and exit
It has high entry/exit barriers for new firms. Government licenses, copyrights and patents, resource ownership, and expensive start-up expenses are all hurdles in a monopolistic market. Other businesses find it difficult to enter a monopolistic market since a single provider controls the whole manufacturing and supply of a certain product.
Price Discrimination
There is a significant risk of price discrimination. Without any resistance, only a trader can adjust the price of a product. It can charge different prices to different consumers, offering higher prices to the rich and lower prices to the poor.
Demand Curve with a downward slope
In a monopolistic market, the demand curve slopes downward. This suggests that a company may profit more by boosting sales, which can be accomplished by decreasing product pricing.
Profit...