1.5 Perfect competition, imperfectly competitive markets and monopoly

Table 1 shows the market shares of regional broadband providers in a country in 2023.

In 2024, Zephyr Network experiences severe financial distress and exits the market completely.

The most likely result of this exit is that the

two-firm concentration ratio ( $CR_2$ ) remains at $70%70\%$ .

market environment becomes more competitive.

monopoly power of NovaTel increases.

market share of independent local ISPs rises to exactly $30%30\%$ .

1.5 Perfect competition, imperfectly competitive markets and monopoly Questions

Table 1 shows the market shares of regional broadband providers in a country in 2023.

In 2024, Zephyr Network experiences severe financial distress and exits the market completely.

The most likely result of this exit is that the

two-firm concentration ratio ( $CR_2$ ) remains at $70%70\%$ .

market environment becomes more competitive.

monopoly power of NovaTel increases.

market share of independent local ISPs rises to exactly $30%30\%$ .