2) I think that Comcast fits a monopolistic model and Ford and Frontier fit an oligopolistic model.
3) The single most important factor in deciding whether or not each company is an oligopoly or a monopoly is the competition. In the case of Comcast, they get to be the sole cable provider in the regions they serve, and as such, can charge a much higher price. For Ford and Frontier, they both face stiff competition in the industries they serve. The second factor I looked at the barriers to entry. The barriers to being a competing cable provider in the regions Comcast serves is so high that they impossible to overcome. This is due to contracts with various …show more content…
The US is in the middle of the pack of developed countries for internet speeds yet we have some of the highest costs. Comcast has little motivation to improve their service as high research and development costs would only hurt their bottom line. Even making the industry an oligopoly would force them to improve at a faster rate than we are currently seeing. The problem is that Government regulation has helped them, as they sign deals with the local Governments of the regions they serve. There needs to be new laws enacted to ensure that the public has access to more options. I think that the automotive industry would benefit from more competition more than the airline industry would. The car industry has been mostly stagnant for decades, and most of the cars on the market today are nearly identical to one another. I think that market forces are helping fix this, we see more companies moving towards more efficient cars, and companies like Tesla are forcing the industry to adapt. The Airline Industry is a little more complicated, and I think it would be difficult for any additional competition to improve the market. Competition would only force current Airlines to find ways to cut costs, which they are already doing at a remarkable