FIGURE 11- 2
-Assume that the world's largest smart- phone producers (Apple,Nokia,Samsung,etc.)operate in an oligopolistic industry.In the long run,which of the following is the most important form of competition between these firms?

Question

FIGURE 11- 2 
-Assume that the world's largest smart- phone producers (Apple,Nokia,Samsung,etc.)operate in an oligopolistic industry.In the long run,which of the following is the most important form of competition between these firms?

Quizplus · Accepted Answer

In an oligopolistic industry, the firms compete using product innovation as it allows them to gain a competitive edge in the market. Advertising, predatory pricing, and brand proliferation can also be used by the firms, but product innovation is the most important form of competition as it helps in enhancing the customer experience and attracting new customers. Tacit collusion is illegal and can lead to antitrust violations.