B) Name a product that you regularly purchase from a firm that operates in an ol

Question

B) Name a product that you regularly purchase from a firm that operates in an oligopolistic industry. Explain why the product and firm fit the model of oligopoly. Think about the TV commercials and/or print advertisements that you've seen from this industry: What interdependence have you noticed between the firm you selected and its rivals in terms of product differentiation, price leadership, or price competition? Discuss some of the ways in which the firm has attempted to remain profitable along with some of the challenges it routinely faces. Make sure to have at least 5 sources.

Explanation / Answer

lets consider case of telecom providers in US like verizon , T mobile , sprint that act as oligopolies. Oligopolies most would be influenced from their competitors and prices are influenced by each other than other factors in the market. The advertisements are very similar selling their subscriptions at competitve pricies , service providers do also make use of price rivalry based upon the market share and first mover advantage. They are more concentrated , competing in advertising , packaging , due to other options they provider lower price options which remain stable over longer period. Firms will face barriers based on economy of scale, patents . policy regulations , high cost of infrastructure and resource allocation are some of the challenges for their survival.

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