'Macroeconomics Homework\r'

' single of the come-at-able distinctives of the UK national daily newspaper would be the ridiculous aspiration that exists in the said market repayable to the availability of the large number of newspaper companies. This characteristic of UK national newspaper causes tight market competition among its member firms.\r\nAn separate characteristic would be the worry of market entry in the said industry. This undersurface be attributed to the large number of newspaper companies that already exist in the market. Price competition serves to be oneness of the major factors that attract more customers ground on the given case. Moreover, innovation is overly vital to the newspaper industry of UK since newspaper readers now select newspapers in a form of either lozenge or any other style that is such(prenominal) different from the accomplished broadsheet from of UK’s newspaper.\r\n use the theory of oligopoly, discuss why the protector chose to dart a new design of pape r in 2005.\r\nRead also Homework Solutions †Chapter 3\r\nOn the other hand, the reason why The Guardian launched a new design of newspaper mainly because they pay back to go with the flow on what other companies has been doing into their products. It was determine that almost all of the competitors of The Guardian has already been shifted from their conventional broadsheet newspapers to smaller design of newspapers like tabloid.\r\nOne characteristics of Oligopoly would be the fact that any action of one firm in the market may it be price or marketing strategy, always affects other players on the said industry (Tutor2u.com 2007: 1). The fact that The Guardian was forced to make new designs for its newspaper would unavoidably mean that they were affected by the strategies of their competitors of transforming the size of their newspapers. Moreover, base on the case, price only matters less or only among the many factors that affects the demand of newspaper readers which is also a part of the traits of Oligopoly.\r\nWorks Cited\r\nTutor2u.com (2007). Oligopoly [online]. Available: http://tutor2u.net/ economics/content/topics/monopoly/oligopoly_notes.htm [Accessed\r\n'