Can you help me understand this Economics question?

1. Read the case “Sagasco Holding Limited” in the case packet and briefly respond to the case

question(s) below.

2. You are welcome to discuss the case as a group, but each person must write their own response.

Responses that are identical will not receive credit.

3. Please submit your write-up online to CANVAS prior to the class in which we discuss the case.

4. Please limit your write-up to one page, single-spaced, 11pt font.

Based on your reading of the case, respond concisely to the following question(s):

(a) Is it appropriate to think of all of Australia as a single geographic market for natural gas? If

so, explain why. If not, how would you define the relevant geographic market(s)?

(b) Based on your geographic market definition(s) above, would you expect the Santos /

SAGASCO merger to increase market power?

(c) Should regulators be concerned that Santos / SAGASCO would have a controlling share of

the Moomba processing facility? Why or why not?

Reading and example attached.



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