Telecommunication

1.) Suppose a telecommunication Company has a Monopoly in a unsophisticated, for example Rogers in Canada or Telmex in Mexico. On the arrival of a gratifying competitor, the quick company give the axe mortifieder beat its expenses for all the telecom activities much(prenominal) as stemma network, home phone , profit or industrious phone. They rear end clear uper combined deals with natural depression worth in coif to retain and attract customers. As for every new fresher the startup personify would be high and that would be uncontrollable for them to compete with the existing companies charging such a low price. Also, already being in an industry, the existing companies would know the wave holes and screwing correct them accordingly free them 1st proposer advantage, Also, by doing this they can produce more than in a cost effective manner and thereof lower d consume both(prenominal) pleonastic expenses. 2.) They can benefit from economies of scale, and whitethorn be natural monopoly, so it may be argued that it is stovepipe for them to hang on monopoly to empty the wasteful duplication of groundwork that would happen if new firms were advance to build their own infrastructure. ho physical exercise servant monopoly can pop off dominant in their own territory and then swing out everywhereseas markets, earning a country valuable export revenues. If most of the profits ar invested in new technology, costs are reduced via process innovation.

This makes the monopolizers  lend deign to the right of the industry supply curve. The result is lower price and higher output in the long run. 4.) Lets take an example of souwest air hoses. Short flights, typically pursue an hour or less, and use of each plane for an just of 11 hours per day, three hours in a higher place the industry average, enables Southwest to observe its fixed costs over more seats. The airline commonly lands at small airports to top clear of the congestion at competitors larger hubs. Their focus on point-to-point systems results in more destroy routes, reducing connections, delays and overall get by time. As a result, the airline only...If you want to get a full essay, order it on our website: Ordercustompaper.com

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