Microeconomics
Microeconomics
11th Edition
ISBN: 9781260507041
Author: Colander, David
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 16, Problem 3QE
To determine

X-inefficiency and the perfect competitor.

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A brand that has experienced an ethical crisis is Victoria's Secret. They have sweatshops in Sri Lanka and use child labor. People are made to work 14 hours a day unpaid. Victoria's Secret has taken a massive blow to the brand in the past couple of years from the horrible information that has come out about the company. The forced labor in sweatshops is what is causing the company to go down in popularity. Not only do they have unethical practices they are also known for their discrimination of their models and pushing unrealistic body standards on young impressionable girls. Everyone knows the Victoria's Secret angels and how they are known for their perfect bodies but behind-the-scenes models faced racism and were forced to go on deadly diets. Their sizing was never inclusive of plus size until this year. They have also faced scrutiny over their "rebranding" with more diverse models but that does not cover the forced child labor they are using to make their garments. It seems it's…
In “Hot Dog Hail Mary,” they discuss how the original model served low-quality food at high prices. What must the vendors believe about the price elasticity of demand for concessions for this business model to make sense?
Is “product crimpling” a horizontal or a vertical product differentiation? Why?
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