Airtel Impotence Of Economic

AIRTEL Introduction Indian telecom industry is the third largest telecommunication net in the world and second largest in harm of wireless connections. In India Airtel is largest telecom company. Airtel has Monopolistic foodstuff structure. In noncompetitive competition at that place ar galore(postnominal) profligates. thither ar free entry and exit in long run. confederacy has commercialise power. Buyer and sellers pick up perfect information. There is crossway differentiation. 1.Product differentiation Airtel sell increases that have concrete or perceived non- terms differences. However, the differences are not so large as to eliminate goods as substitutes. Technically the cross price elasticity of demand surrounded by goods would be positive.In accompaniment the XED would be high. Monopolistic goods are ruff described as close but imperfect substitutes. The goods coiffure the same basal functions. The differences are in qualities and circumstances such as type, style, quality, reputation, port and location that tend to distinguish goods. 2.Many profligates There are some an(prenominal) soakeds in each MC product group and many profligates 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 regulars gives each MC firm the freedom to set prices without engaging in strategical conclusion 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 move the market each with its own unique product or in pursuit of positive profits and any firm unable to cover its costs can leave the market without incurring liquidation costs. This assumption implies that there are touching start up costs, no sunk costs and no exit costs. 4.Independent decision making Each MC firm on an individu al 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 in force(p) essay, order it on our website: OrderEssay.net

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