Essay specific features
May 3, 2012
No of pages / words:
2 / 281
Rating of current essay:
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
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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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