ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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It’s question 3.13 Body Shop
3.13. BODY SHOP. The UK Body Shop franchise network consists of three types of
stores: franchised, company owned, and partnership stores. All stores that are dis-
tant from headquarters by more than 300 miles are franchised. More than half of the
company-owned stores are within 100 miles of headquarters.¹4 How can you explain
these facts?
14
3.14. INTEL. Explain why Intel has maintained, if not increased, its competitive advan-
tage with respect to rivals. Indicate the explanatory power of the different causes con-
sidered in the text (impediments to imitation, causal ambiguity, strategy, history).
loqasos
CHALLENGING EXERCISES
3.15. INPUT SHARES. Consider a firm with production function (Cobb-Douglas)
9= {Ka LB
ut prices r, w are given. Show that a profit maximiz-
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Transcribed Image Text:3.13. BODY SHOP. The UK Body Shop franchise network consists of three types of stores: franchised, company owned, and partnership stores. All stores that are dis- tant from headquarters by more than 300 miles are franchised. More than half of the company-owned stores are within 100 miles of headquarters.¹4 How can you explain these facts? 14 3.14. INTEL. Explain why Intel has maintained, if not increased, its competitive advan- tage with respect to rivals. Indicate the explanatory power of the different causes con- sidered in the text (impediments to imitation, causal ambiguity, strategy, history). loqasos CHALLENGING EXERCISES 3.15. INPUT SHARES. Consider a firm with production function (Cobb-Douglas) 9= {Ka LB ut prices r, w are given. Show that a profit maximiz-
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