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Many MBAs who ventured into the "dot.com" world of the late 1990s found themselves unemployed by 2001 as many firms in that industry ceased to exist. However, during their tenure with these companies, these managers gained valuable skills in how to operate within a highly competitive environment. Based on the numbers in  below, which industries represent the best match for these managers' expertise? Look at the industries listed in  , what factors give rise to the varying levels of market power?

 

Industry Own Price Elasticity of Market Demand Own Price Elasticity of Demand Rothschild Index
for Representative Firm's Product
Food -1 -3.8 .26
Tobacco -1.3 -1.3 1
Textiles -1.5 -4.7 .32
Apparel -1.1 -4.1 .27
Paper -1.5 -1.7 .88
Printing and Publishing -1.8 -3.2 .56
Chemicals -1.5 -1.5 1
Petroleum -1.5 -1.7 .88
Rubber -1.8 -2.3 .78
Leather -1.2 -2.3 .52

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M9478987

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