How do businesses decide what value to charge the customer for their products and services? How do they decide what to eng hold oner and or how much should be produced? These decisions primary(prenominal)ly depend on the type of industry in which the business operates.  In the fall in States, economists classify industries into four different trade structures; sharp monopoly, pure competition, monopolistic competition, and oligopoly. Understanding each of the four market structures yield manufacturer to manage its determine strategy and production output. This root will differentiate among those four market structures, while identifying pricing and non-pricing strategies used by the company within each market structure.
Oligopoly
US mobile phone service industry is a correct example of an oligopolistic industry. In this industry, companies ar providing the same kind of service, and are also trying to differentiate themselves to attract much customers. The mobile phone service market was dominating by AT&T, Verizon, bolt Nextel, and T-mobile with over 86.7% of market parcel in 2007 and 82.5% market share in 2008.  The two main players were AT&T with 71.3million subscribers and Verizon with 67.2 million subscribers. Since there are only four firms that are dominating the market, the companies are mindful of the actions of others. For example, in 2008, Verizon introduces its $100 a month flat-rate plans. The plan includes measureless calling and internet usage.
 One week after the current release, AT&T and T-mobile also announced their saucy flat-rate plan which is similar to Verizons plan. AT&T charges $99 a month and T-mobile charges $99.99 a month. In January 2010, AT&T and Verizon both announced that they are displace the cost of its unlimited calling plans from $100 a month to $70 a month with the same feature.   This is an action responding to T-mobile and Sprints price cut strategy late conclusion year. Non-pricing strategies are always used within the competition in oligopoly market structure. AT&T contracted with apple and introduced an AT&T exclusion Smartphone, iPhone.  By the end of 2008, AT&T has signed up 7 million...
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