Question map
Mobile phone operators market in India is an example of
Explanation
The mobile phone operators market in India is a classic example of an oligopoly. An oligopoly is a market structure characterized by a small number of large firms that dominate the industry and possess significant market share [1]. In the Indian context, the sector has transitioned from a fragmented market to an oligopolistic structure primarily dominated by a few major players like Reliance Jio, Bharti Airtel, and Vodafone Idea. Key characteristics of this market include high barriers to entry, strategic interdependence where firms adjust pricing and plans based on competitors' actions, and a large number of buyers. While the industry is highly competitive, the concentration of power among a few sellers who influence market conditions confirms it as an oligopoly rather than perfect competition or a monopoly.
Sources
- [1] Microeconomics (NCERT class XII 2025 ed.) > Chapter 5: Market Equilibrium > Chapter 5 > p. 89