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There Are Three Leading Manufacturers of Smart Phones in Argonesia

question 17

Essay

There are three leading manufacturers of smart phones in Argonesia.Their products are considered to be perfect substitutes.
a)Will these firms earn zero economic profits in the long run? Explain your answer.
b)What can the firms do to earn maximum profit?


Definitions:

Market Share

The portion of a market controlled by a particular company or product, expressed as a percentage of total sales in that market.

Channel Members

Businesses or individuals that participate in the distribution channel, performing functions that add value in moving a product from the manufacturer to the customer.

Profit Margins

A financial metric that measures the percentage of revenue that exceeds the costs of producing goods or services.

Program Champion

An individual who passionately promotes and supports a project or initiative within an organization, driving its success.

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