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25. Classify each of the following as either generic or enterprise competition.
(a) A coffee processing firm competing with a tea-processing firm (b) A choice between going to a cinema or to swim (c) Ukwell Bookshop competing with Vitabu Bookshop (d) Mt Kenya High School competing for academic performance with Mt Elgon High School
The answer categorizes the given scenarios into monopolistic competition, generic competition, and enterprise competition.
Explanation:
Classification of Competition Types:
(a) Monopolistic competition: A coffee processing firm competing with a tea-processing firm. Both offer slightly different products, facing downward-sloping demand curves.
(b) Generic competition: A choice between going to a cinema or to swim. No direct market competition.
(c) Monopolistic competition: Ukwell Bookshop competing with Vitabu Bookshop. Both offer slightly differentiated products.
(d) Enterprise competition: Mt Kenya High school competing academically with Mt Elgon. Direct competition with differentiated performance.
Learn more about Types of market competition here:
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