everal Governments in CARICOM nations are reluctant to allow the provision of telecommunication services by multiple providers. They prefer that a Government Agency provides these services as they believe that consumers will be protected. However the revenue they gain should not be ignored as a possible motive. A recent study found that 8 countries out of the 15 in the CARICOM nations’ have telecommunication services being provided by the a state company. For example, in St. Lucia, De Phone is the sole provider of telecoms. They offer discounts to senior citizens and students and also provide a lower price for individual who purchase multiple plans. Of note, the remaining CARICOM nations, including Trinidad and Tobago, have opened their markets to competition. These countries have seen increased advertising among competitors to market their product. i. State what market structure exists in St. Lucia and illustrate how equilibrium price and quantity determined in this industry with graphs ii. Can excess profit be earned by De Phone in the long run. Explain 3 valid points iii. Describe what is occurring in the following statement: They offer discounts to senior citizens and students and also provide a lower price for individual who purchase multiple plans. iv. State what market structure exists in Trinidad and Tobago. Explain if excess profit will exist in the long run
everal Governments in CARICOM nations are reluctant to allow the provision of telecommunication services by multiple providers. They prefer that a Government Agency provides these services as they believe that consumers will be protected. However the revenue they gain should not be ignored as a possible motive. A recent study found that 8 countries out of the 15 in the CARICOM nations’ have telecommunication services being provided by the a state company. For example, in St. Lucia, De Phone is the sole provider of telecoms. They offer discounts to senior citizens and students and also provide a lower price for individual who purchase multiple plans. Of note, the remaining CARICOM nations, including Trinidad and Tobago, have opened their markets to competition. These countries have seen increased advertising among competitors to market their product.
i. State what market structure exists in St. Lucia and illustrate how
ii. Can excess profit be earned by De Phone in the long run. Explain 3 valid points
iii. Describe what is occurring in the following statement: They offer discounts to senior citizens and students and also provide a lower price for individual who purchase multiple plans.
iv. State what market structure exists in Trinidad and Tobago. Explain if excess profit will exist in the long run.
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