INTRODUCTION In today's high-tech world, most people see mobile phones as a part of their everyday life. Mobile phones are convenient and transportable and it comes in a variety of design, shape and colour with different functions. Nokia, being the leading brand in the mobile phone market have successfully expanded their market by achieving more than 1.6 billion mobile phone subscriptions globally. With Nokia's mission to connect people, they help fulfill a fundamental human need for …showed first 75 words of 2536 total…

…showed last 75 words of 2536 total…cover these losses by applying taxes. As mentioned, Nokia is a firm that is involved in a monopolistic competitive market and as such it has market power due to a downward-sloping in demand curve. Market power is the ability of a firm to alter the market price of a good or service (Gans et al., 2005). As such, Nokia can raise the price of the mobile phone at a certain level without losing all the customers.