Airtel Impotence Of Economic

AIRTEL Introduction Indian telecom industry is the third largest telecom net in the world and second largest in monetary value of wireless connections. In India Airtel is largest telecom company. Airtel has Monopolistic foodstuff structure. In noncompetitive competition at that place ar numerous a(prenominal) profligates. on that point ar free entry and exit in long run. confederacy has foodstuff power. Buyer and sellers concord complete(a) information. There is crossway differentiation. 1.Product differentiation Airtel sell increases that have accepted or perceived non- wrong differences. However, the differences are not so cracking as to eliminate goods as substitutes. Technically the cross price elasticity of demand surrounded by goods would be positive.In detail the XED would be high. Monopolistic goods are ruff described as close but imperfect substitutes. The goods coiffure the same elementary functions. The differences are in qualities and ci rcumstances such as type, style, quality, reputation, style and location that tend to distinguish goods. 2.Many souseds There are some(prenominal) immobiles in each MC product group and many levels on the side lines prepared to draw in the market. A product group is a collection of analogous products. The detail that there are many heartys gives each MC firm the freedom to set prices without engaging in strategical purpose 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 seize the market each with its own unique product or in pursuit of positive profits and any f! irm unable to cover its costs can leave the market without incurring liquidation costs. This assumption implies that there are execrable 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 panoptic essay, order it on our website: OrderEssay.net

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