Managerial Economics & Business Strategy 8th Edition by Michael Baye,Jeff Prince

Exercise 4

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 Table 7-3 in this chapter, which industries represent the best match for these managers' expertise? Looking at the industries listed in Table 7-3, what factors give rise to the varying levels of market power?