Reply #61: Good idea

[Nederland]

Let's compare oil to the battery industry on these terms:

1. All firms sell an identical product.
2. All firms are price-takers.
3. All firms have a relatively small market share.
4. Buyers know the nature of the product being sold and the prices charged by each firm.
5. The industry is characterized by freedom of entry and exit.


1: Oil yes, batteries no.
2: Oil no, batteries yes (to an extent).
3: Oil yes, batteries yes.
4: Oil yes, batteries no.
5: Oil no, batteries yes.

So we have 3 yes and 2 no for each industry. So what is your point?