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Hi guys! I´m really in a struggle here, I´m writing my IA Microeconomics on this article http://www.forbes.com/sites/greatspeculations/2014/11/11/att-in-competition-with-america-movil-in-mexico-with-iusacell-acquisition/, but I´m really having a hard time on what graphs to use, can any of you explain to me the ideal/correct graph? I would really appreciate it!

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Hi,

 

Here are a few things you can show: 

  • A revenue maximizing firm in an oligopoly
  • The consequences of larger competition (thanks to regulation and the new entrant --> decreased demand per individual firm)
  • The expectations of an overall increase in demand in the future (which will certainly offset the decrease mentioned earlier)

You can also check out my blog here for further articles.

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