Question

apple, a company with a strong product line, has strong bargaining power of multiple choice traders. suppliers. buyers. substitutes.

Answer 1

Apple and Samsung work together to produce the iPhone because they both benefit from the trade. Apple focuses on design while Samsung specializes in making electronics parts. This collaboration allows each company to focus on its strengths, resulting in a better product.

Step-by-step explanation:

Apple and Samsung work together to produce the iPhone because they both benefit from the trade. Apple focuses on designing elegant products that are easy to use, while Samsung specializes in making high-quality electronics parts. By collaborating, Apple can concentrate on its strengths and delegate the production of parts to Samsung, resulting in a better overall product.

Trade is about mutually beneficial exchange, and when each company focuses on what it does best, there are gains for all involved. This economic logic behind international trade applies to countries as well, where each nation can specialize in industries they are most competitive in, leading to overall economic growth.

Answer 2

Apple and Samsung maintain a competitive yet symbiotic relationship; while competitors in the smartphone market, Samsung supplies parts to Apple, illustrating mutual benefits in international trade. The nature of a monopoly is also discussed, highlighted by the example of Microsoft's dominance in operating systems, where the lack of close substitutes fortifies its market position.

Step-by-step explanation:

The relationship between Apple and Samsung exemplifies the complex dynamics of international trade and market competition. Although they are fierce competitors, especially in the smartphone market, they also maintain a supplier-buyer relationship. Samsung, being one of the world's largest electronics parts suppliers, provides components that are essential for Apple to produce its iPhones. This mutually beneficial arrangement allows each company to focus on their respective strengths: Samsung on manufacturing high-quality electronic parts, and Apple on designing user-friendly, elegantly designed products. The scenario demonstrates that when companies specialize in their competencies, it can lead to gains through trade despite being competitors in the consumer market.

Understanding monopolies in contrast, involves recognizing firms that are singular in a specific market with no close substitutes, such as Microsoft in its dominance in operating systems. The presence or absence of similar products by other firms affects whether a company like Apple or Samsung can be considered a monopoly. The extent to which alternatives are deemed 'close' or 'not close' is often a point of debate, though in general, a monopoly is characterized by the lack of competing products that are similar enough to offer consumers a choice.