This chapter discusses companies that are oligopolists in the market for the goods they sell. Many of the same ideas apply to companies that are oligopolists in the market for the inputs they buy.a.If sellers who are oligopolists try to increase the price of goods they sell, what is the goal of buyers who are oligopolists?b.Major league baseball team owners have an oligopoly in the market for baseball players. What is the owners goal regarding players salaries? Why is this goal difficult to achieve?c.Baseball players went on strike in 1994 because they would not accept the salary cap that the own-ers wanted to impose. If the owners were already colluding over salaries, why did they feel the need for a salary cap?
INNOVATION – Chapter 3 An example of innovation that characterized the dimensions of innovations: Toyota made an innovative step with the development of the Prius Hybrid. It is a product innovation since this is an output for the company. The Prius Hybrid is a radical innovation because it was very new and different when it first hit the streets. It was a competence-enhancing innovation because it soon gave other car companies, the want and desire to make vehicles that were perfect for commuters, gas saving, and eco-friendly. It was architectural as an innovation because it brought in a whole new design. The car was made with an engine that would automatically switch back and forth with the energy motor to
