i. State what market structure exists in St. Lucia and illustrate how equilibrium price and quantity determined in this industry. ii. Can excess profit be earned by De Phone in the long run. Explain. iii. Describe what is occurring in the following statement: They offer discounts to senior
Several 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
and quantity determined in this industry.
ii. Can excess profit be earned by De Phone in the long run. Explain.
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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