1. What are the 3 characteristics of the oligopoly market structure?

2. What is the formula for the 4-firm concentration ratio?

3. Calculate the 4-firm concentration ratio for this industry for 2016. Visit this website: https://www.fcc.gov/20th-mobile-wireless-competition-report-quick-facts#mkt_shares_chart(Links to an external site.) Scroll down to the "Market Shares" graph. For 2016, hover over each bar of the bar graph to read off the market shares.Show your work.

4. What is the formula for the Herfindahl-Hirschman Index (HHI)?

5.Calculate the Herfindahl-Hirschman Index (HHI) value for this industry. Visit this website: https://www.fcc.gov/20th-mobile-wireless-competition-report-quick-facts#mkt_shares_chart(Links to an external site.) Scroll down to the "Market Shares" graph. For 2016, hover over each bar of the bar graph to read off the market shares. Consider "Regional Service Providers" as a single firm. Show your work.

6. Why do you think the cell phone service industry exists as an oligopoly? Why don't we see more competitors?

7. What is the basic idea behind a "kinked demand curve"?

8. Do you the cell phone service providers experience a kinked demand curve? Why or why not?