why not have one of the company’s focus their efforts on the smaller jets and leave the other market to the other competitor? Doesn’t that allow them to be monopolists in their fields and eventually increase the prices?
why not have one of the company’s focus their efforts on the smaller jets and leave the other market to the other competitor? Doesn’t that allow them to be monopolists in their fields and eventually increase the prices?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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?There are prime examples about duality where one producer waits for another to produce and change their pricing. For example, Boeing and Airbus. Airbus announced that they will start producing the A380 which is one of the largest passenger carriers in the world. Boeing immediately announced the production of Boeing dream liner 787 which is comparable to the A380. When the prices came out, A380 were forced to reduce their prices to be close to the 787. The question I want to ask is why not have one of the company’s focus their efforts on the smaller jets and leave the other market to the other competitor? Doesn’t that allow them to be monopolists in their fields and eventually increase the prices?
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