Which market structure do cell phone service companies fall

Asked by maham237 @ in Business viewed by 329 People

Examine the market for cell phone providers in South Africa and answer the questions that follow:
a. Into which market structure do cell phone service companies fall?
b. Provide ONE reason to motivate your answer in a.
c. Calculate the total revenue generated by the oligopolist after price fixing.

Answered by maham237 @


The market structure that cellphone service falls into is an oligopoly. This is because telco service providers are only a few the barrier to enter the market is high. The companies can also achieve short run and long run profit. After price fixing, the oligopolist generated lesser total revenue.

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