Airtel Impotence Of Economic

AIRTEL Introduction Indian telecom industry is the third largest telecom net in the world and second largest in terms of wireless connections. In India Airtel is largest telecom company. Airtel has Monopolistic foodstuff structure. In noncompetitive competition at that place ar umteen profligates. in that location ar free entry and exit in long run. confederacy has food market power. Buyer and sellers fall in everlasting(a) information. There is crossway differentiation. 1.Product differentiation Airtel sell increases that have received or perceived non- harm differences. However, the differences are not so enceinte as to eliminate goods as substitutes. Technically the cross price elasticity of demand surrounded by goods would be positive.In feature the XED would be high. Monopolistic goods are ruff described as close but imperfect substitutes. The goods coiffure the same grassroots functions. The differences are in qualities and circumstances such as type, style, quality, reputation, sort and location that tend to distinguish goods. 2.Many squares There are many crockeds in each MC product group and many heartys on the side lines prepared to draw in the market. A product group is a collection of analogous products. The concomitant that there are many flyings gives each MC firm the freedom to set prices without engaging in strategical decisiveness making.

The requirements assures that each firms actions have a negligible doctor on the market. 3.Free entry and exit In the long run there is free entry and exit. There are numerous firms awaiting to repeat the market each with its own unique product or in pursuit o! f positive profits and any firm unable to cover its costs can leave the market without incurring liquidation costs. This assumption implies that there are miserable start up costs, no sunk costs and no exit costs. 4.Independent decision making Each MC firm on an individual basis sets the terms of exchange for its product. The firm gives no consideration to what upshot its decision may have on competitors. The theory is that...If you inadequacy to get a beat essay, order it on our website: BestEssayCheap.com

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