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"In a hypothetical market of mobile phon...

"In a hypothetical market of mobile phones, the brand AWAAZ was leading the market share. Its nearest competitor VAARTA suddenly changed its strategy by bringing in a new model of the moblile phone at a relatively lesser price in response, AWAAZ to slashed its price. "
Based on the above information, identify the form of market represented and discuss any one feature of the market.

Text Solution

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(i) few big firms and large no. of buyers
(ii) Price rigidity (Non-price competition)
(iii) Barriers to entry of fiems
(iv) Interdependence
(Note. For detail refer to Section 10.6 of chapter 10)
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