The text's discussion of the airline industry, the soft drink industry, and the doughnut industry reveals a common theme when it comes to the types of competitive practices firms in each industry engage in
What is it and what advantage does it offer firms?
Firms in each of the industries listed above tend to compete on the basis of product differentiation rather than price. For example, in the airline industry, a key source of competition in recent years has been the types of seating offered to intercontinental travelers. In the soft drink industry Coke and Pepsi competed for market share in the market for bottled water by offering different types of packaging and water with different nutritional characteristics. The major players in the doughnut industry compete on the basis of service and range of choices offered to consumers. Note that by competing on the basis of product characteristics rather than price, firms' revenues are more likely to remain stable. In addition, it is easier to predict how a firm's competitors will behave, i.e., the types of competitive strategies they might adopt.
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Consumption per worker is 72, depreciation is 12.5%, and capital per worker is 64. Given the production function y = 20 , show that this economy is in a steady state
If the saving rate should double, what is the new steady-state level of consumption per worker?
A barrier to entry in an oligopolistic industry is ______.
a. perfect competition b. the large number of firms involved c. the low average costs for a new entrant d. control over important inputs
Which of the following is NOT a reason for Canada to join NAFTA?
a. Canadian firms can expand their markets by selling to the United States and Mexico. b. Canadian firms can enjoy lower average costs by producing more. c. Canada did not want U.S. products to dominate its domestic market. d. Canada will see an increase in income and employment by joining NAFTA.
Can unions increase productivity? Explain
What will be an ideal response?