Question
Please answer the following questions. Context: Poultry industry The Poultry Processing industry in Australia has encountered a blend of operational circumstances in recent years. Despite
Please answer the following questions.
Context: Poultry industry
The Poultry Processing industry in Australia has encountered a blend of operational circumstances in recent years. Despite a rise in poultry consumption, intense competition among major supermarkets has curbed the growth of poultry prices, impacting both industry revenue and profitability. Fluctuations in domestic wheat feed prices have further exacerbated cost volatility, compelling processors to consolidate and restructure in order to enhance productivity and profitability. Over the five-year period leading up to 2023-24, revenue within the Poultry Processing industry is projected to experience a marginal annual growth rate of 0.1%, reaching a total of $8.8 billion. However, a decline of 3.7% in revenue is anticipated for 2023-24, largely influenced by shifts in poultry prices. These challenges have prompted processors to streamline their operations and actively pursue avenues to maintain their competitiveness within the market.
You are appointed as a Senior Estimating & Pricing Specialist for the poultry sector in Australia, and your task is to develop an analysis that will be reported to the Head of the Analytical Pricing Unit.
Your task is to develop a short report followed by a video recording addressing the following points:
- Analyse the market structure for poultry meat industry in Australia.
- Discuss the implications of the identified market structure on pricing strategies, consumer choice, and industry performance.
- Select another market structure different from the one present in the poultry industry (e.g., perfect competition, monopoly, oligopoly, monopolistic competition). Compare and contrast the market structure of the poultry industry with the chosen market structure. Emphasize similarities and differences in terms of firm behavior, pricing strategies, consumer welfare, and industry performance, supported by economic theory and real-world examples.
- Is the poultry meat industry better off operating in a monopolistically competitive market rather than a perfectly competitive one?Support your discussion and argument(s) using relevant microeconomic theory/theories in a graph(s) and explain your arguments. In your response, discuss monopolistic competition considering both short-run and long-run economic profit.
- Illustrate how advertising or promotional campaigns, such as the use of a marque and advertising indicating a poultry is '100% organic', can impact a firm's costs and profits if they are successful.Support your discussion and argument(s) using relevant microeconomic theory/theories in a graph(s) and explain your arguments.
- Explain, usingmicroeconomic theory/theories, and illustratein a graph(s), the likely short-run and long-run effects of the unfavorable market conditions caused by increased in poultry feed on a firm's profit and output.
Please note that the format of this is a presentation that I'll be presenting through a recording of myself and the recording should be 3-5 minutes. So please format your answer in a way I can use it in my recording and please include enough words to fit the 3-5-minute parameter. Additionally, please include and list what references you used and where you used them.
Thank you so much in advance.
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