Canon has manufactured high-quality cameras since it was founded in 1933. SLR-cameras (i.e. not point and shoot cameras) are purchased in two parts: the body and the lenses. Photographers who want a Canon product must make the upfront investment in the expensive camera body. Canon earns significant profit from the sale of camera bodies and then earns a stream of profits from camera lenses. An owner of a Canon camera body can also purchase lenses from other companies that produce Canon-compatible products. Would Canon be better off if there were no other firms that made Canon-compatible lenses?
Canon has manufactured high-quality cameras since it was founded in 1933. SLR-cameras (i.e. not point and shoot cameras) are purchased in two parts: the body and the lenses. Photographers who want a Canon product must make the upfront investment in the expensive camera body. Canon earns significant profit from the sale of camera bodies and then earns a stream of profits from camera lenses. An owner of a Canon camera body can also purchase lenses from other companies that produce Canon-compatible products. Would Canon be better off if there were no other firms that made Canon-compatible lenses?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Canon has manufactured high-quality cameras since it was founded in 1933. SLR-cameras (i.e.
not point and shoot cameras) are purchased in two parts: the body and the lenses. Photographers
who want a Canon product must make the upfront investment in the expensive camera body.
Canon earns significant profit from the sale of camera bodies and then earns a stream of profits
from camera lenses. An owner of a Canon camera body can also purchase lenses from other
companies that produce Canon-compatible products. Would Canon be better off if there were no
other firms that made Canon-compatible lenses?
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