outcome1economicHND微宏观.doc

Introduction Virgin Mobile was established by Richard Branson in 1999 and 3 years latter it made profit. Through entering the mobile phone market lately, Virgin Mobile was regarded as a niche player. The mobile phone market can be seemed as an oligopoly, which means that there are only a few sellers of a particular commodity. There are quite a number of oligopolies in the United Kingdom e.g. banking, supermarkets, detergent production. Etc. Findings 1. Characteristics of mobile phone market can be thought two points: Goods or services may be very similar. Difficult to predict behavior- considering non-price competition. Although mobile phones are launched new models continuously, the functions, styles of the mobile phone are quite similar. Even how it developing, the mobile phone is a tool that helps people connect others at any moment. It does not have huge difference in substance. Besides the services offered are alike among the mobile phones market, without exception, sending message and call are the most prevalent service which can be earned large profit. Now days, lots of company try to enter mobile phone market, but a few of them can earn profits. Mobile phone is a high-technology product so people will consider about the brand for offer good quality. What’s more favorable policy can appeal more attention. 2 Price is OP and output is OQ. At price higher than P demand is elastic which will cause loss market share. At price lower than P then the fear is that cutting prices will force rivals to follow suit and there will be little gain in the way of additional sales. Because price is above marginal cost, selling more at the going price raises profit. From the case, the mobile phone market can be thought that the price decide the quantity of product. If the company raises the price, certainly the sales will fall. On contrary, decrease the price can gain advantages from other companies; company has possible to grab more customers 3 Apart from oligopolistic market