The Australian airline industry is largely dominated by Qantas, Virgin Blue and Jetstarwith a market share of about 90%. Answer the questions below.

1. What is the market structure in whichQantas, Virgin Blue and Jetstar operate in Australia? Explain your answer using the market structure characteristics for the 3 firms (Qantas, Virgin Blue and Jetstar).
2. Use a figure to explain what you understand by the term "Kinked demand curve" for Qantas, Virgin Blue and Jetstar market structure.