Is a prepaid phone plan right for yon? Smartphone service providers are offering

Question

Is a prepaid phone plan right for yon? Smartphone service providers are offering no-contract plans For example T-Mobiles lexpay plans allow users to buy monthly service, Boost Mobile's no-contract plan hasuinted use advrgn Moble's plan has urinted calng fr S49 99anoth Aprowders actively maketrg her rocntactplns Source. Wall Street Joumal, Apnl 22, 200 Smartphone service plans are sold in a market The characteristics of the smartphone service plan market are O A. many Srms selling an identical product to many buyers O B. a single fiem with no close subniltules and a barrier to enby O A monopolistic OB, perfectly competive OC.a lage umber of fms competing by making simlar but slighty dfferet products wth barers to entry ratprevent the entry ofnew sms products O E. a large number of ims competing by making simlar but slighty difeen products with no single feme dic tating market condtions o select your CE Mr 9 8 88 Prt Sc

Explanation / Answer

1) Smartphone plans are sold in a "Monopolistic competition" market. The correct answer is "D".

The reason for this is there are many small companies selling their slightly differentiated product to the same consumer. in case of a perfect competition market, there are a huge number of sellers selling a homogenous product, in a monopoly, there is just a single seller selling goods with no close substitute, a monopoly can discriminate market by selling the same product at a different price to different consumers and in a monopolistic competitive market there are a large number of firms selling slightly different product.  

2) The correct answer to this question is "E".  

There are a large number of small firms operating by making similar but slightly different products.

A telecom market is generally a large number of small firms operating and their products are slightly different mostly nonprice discrimination. They differentiate their own product from others by marketing, advertisement, Packaging and other means.  

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.