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Case Study as background to the assessment questions You have been employed as part of the investments team working for a superannuateon fund. One of

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Case Study as background to the assessment questions You have been employed as part of the investments team working for a superannuateon fund. One of your tasks is to examine the market for shares in firms in the Retail sector and firms that operate in the Banking sector. The reason you have been given this task is because the investment manager wants to select investments to include in the superannuateon fund that will provide a desirable combination of risk and return for the fund. The returns and the risks associated with firms in the Retail sector and Banking sector are different from the returns and the risks associated with firms in other industries like travel, entertainment, energy and resources so this will make it possible for the superannuateon fund to benefit from the increased diversification. You are aware that there are four (4) main market structures: Perfect competition . Monopoly Oligopoly . Monopolistic Competition Question 1 You are looking at the email from your investment manager and she has asked you to provide her with the following information. (a) You are required to complete the form by entering YES or NO in the cells in the table shown below: Key Characteristics Retail sector Banking sector A Large Number of firms A Price Maker High Barriers to entry Substitute Goods / Services are readily Available (b) Using your knowledge of the microeconomic theory of markets and your answers to part (a), determine which of the 4 main market structure types best describes the firms in the Retail sector and which of the 4 main market structure types best describes the firms in the Banking sector

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