Question

Mobile phone operators market in India is an example of
1. Monopoly
2. Monopolistic Competition
3. Oligopoly
4. Perfect Competition

Answer 1

Correct Answer - Option 3 : Oligopoly

The correct answer is Oligopoly.

• The phone operators market in India is an example of an Oligopoly.
• Oligopolies occur when a small number of firms collude to restrict output and/or fix prices, in order to achieve above normal market returns.
• In the phone operators market in India, the service providers are very few in numbers like Reliance Jio, Airtel, BSNL, etc. and these few operators determine the demand and supply of the market, hence it is considered an Oligopolistic market.

• Various types of market are as follows-
  • Perfect competition- There are a large number of buyers and sellers and they are in high competition with each other.
  • Monopolistic competition- There are still a large number of buyers as well as sellers. But the products are similar but all sellers sell slightly differentiated products.
  • Monopoly- It is a type of market where only one seller ad he controls the entire market.