T5 - Dynamics of Competitiom Flashcards
1
Q
Short term pros of competition
A
Higher productivity
Increased innovation
Lower prices
More NPC
2
Q
Long run pros of comp
A
Dynamic efficiency
Better allocation of resoruces
3
Q
NPC Examples
A
Advertising
Loyalt cards
Customer service
Variety fo goods and services
Home delivery services
Longer opening hours
Brand image
4
Q
What is creative destruction
A
Captialism leading to consatnt chanegs in the economoy
5
Q
How does CD work
A
Changing consumer wants and needs make firms profitable/ unprofitable, those unprofitable shut down
6
Q
Why is CD good
A
Improves allocation of resources
7
Q
Why is CD bad
A
Comapny closures
Loss of jobs
