Focusing enables to get a competitiveedge, but it in like manner passes on acouple of perils that will be troublesome tothe focused in firm, for instance,BFFA-the likelihood that competitors will notfind incredible ways to deal with facilitatewith the drew in association's abilities inserving the market forte.B-the potential for the tendencies andnecessities of forte people to move astime goes on toward standard providerthing credits.C-the potential for the forte to end up beingunnecessarily charming to such an extentthat it will not attract new competitors,in this way giving preposterous marketsegment benefits.D-the likelihood that a drew in associationwill end up being exorbitantly cost usefulto such an extent that it will achieve absurdadvantages.E-None of these are chances worthworrying about.3:42 AM

B. the potential for the tendencies and necessities of forte people in moving over the time and goes…

Answered: Focusing enables to get a competitive…

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Oligopoly

Section: Chapter Questions

Problem 5CQQ

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. When Chinese automakers began exporting cars, rather thanfocusing on developed nations in the West, they shippedautos to emerging markets in countries such as Algeria, Russia,Chile, and South Africa. In these markets, even used vehiclesfrom multinational manufacturers are relatively scarce—andrelatively expensive. The Chinese automakers, who prioritizelow cost rather than design or even safety, applied a penetration-pricing strategy. A woman in Santiago, Chile, who boughta new Chery S21 explained, “The price factor is fairly decisive.I paid $5,500 new and full. Toyota with similar features costsaround $12,000.” Why do you think Chinese automakerschose that pricing strategy? Do you think it was successful?As Chinese regulators pressure these manufacturers to maketheir cars safer, do you think they will be able to keep theirprices low compared with those of the international automakers? Why or why not?26
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