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

Quizplus · Accepted Answer

In an oligopolistic market, product differentiation and innovation are crucial for firms to succeed as they cannot compete solely on price. Therefore, product innovation is the most important form of competition between the largest smartphone producers in the long run. Predatory pricing and tacit collusion may occur, but they are not sustainable strategies in the long run as they could lead to antitrust regulation. Brand proliferation and advertising may be important tactics to promote new innovative products, but they are not as significant as actual product innovation in the long run.

Assume That the World's Largest Smart-Phone Producers (Apple,Nokia,Samsung,etc