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Willard S


Date added:

May 3, 2012








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2 / 281


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Some substitutes are defined as perfect substitutes, e.g. a Panasonic VHS recorder maybe a perfect substitute for a Sony VHS machine, while others are close substitutes, e.g. a Philips DVD player. More distant substitutes may be more different still, e.g. a trip to the cinema. · Ultimately, given time, all goods may substitute for all other goods, e...
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money saved from not buying a new VHS may be used to finance a new house. · Suppliers must compete for firms business in terms of price and quality. A variety of suppliers ensures that no one supplier can exert undue influence over the firm. · New entrants are free to enter the market provided they can secure the resources (capital, labour, knowledge) required to enter the market...
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