独占竞争教学讲义.pptVIP

Students seem to have a bit of trouble appreciating that entry and exit change the demand for a firm’s product. Explain this effect by sticking with the tennis shoes example. Explain that the demand for Nike tennis shoes changes and the demand curve for Nike tennis shoes shifts if other firms enter or exit. If Tommy Hilfiger and the Gap started to make tennis shoes, some of Nike’s former customers would switch to these two new brands, and the demand for Nike shoes would decrease. The demand curve for Nike shoes would shift leftward. If Adidas, Fila, and Reebok stopped making tennis shoes, some