The Information Economy, Primarily Information Technology and the Telecommunications have seen a dichotomous effect in relation to barriers to entry and government intervention. In relation to specifically these two industries in Australia and abroad, the Information Technology sector is to some degree an Oligopolist market. However foremost to many, Microsoft Corporation has eclipsed the industry into a Monopoly over software in the information Technology sector. In the Telecommunications Industry in Australia, the economic sector has seen for initially the deregulation of Telstra, into two-thirds privatisation with the public float. From then the telecommunications industry in Australia has seen for less government intervention with the barriers to entry reduced and many new companies being attracted to the positive profits in this multi billion-dollar industry. Therefore this conclusion is dichotomous in nature because in the Information Technology industry there are extremely high barriers to entry and more need for government intervention. However on the other ha

The economic classification of this is called Price Fixing, thus a price set below the equilibrium level. This results in a price being set below the equilibrium price by the incumbent firm to limit competition in the industry inflicting short-term losses on both themselves and the new entrant. After the new entrant is forced out of the market, the incumbent firm will then raise the price to cover its short-term losses.

Some common words found in the essay are:
Information Technology, Industry Australia, Price Fixing, Industry Communications, Yip Yip, Fixing Microsoft, P*AC Sharkey, Street Journal, Barriers Entry, Microsoft Corporation, barriers entry, government intervention, information technology, average cost, telecommunications industry, incumbent firm, reduction barriers entry, reduction barriers, telecommunications industry australia, price equal, industry australia, technology sector, information technology sector, industry australia seen, equal average cost,
Approximate Word count = 1178
Approximate Pages = 5 (250 words per page double spaced)