Question

1. Name a product or type of product that is marketed using horizontal segmentation and how many different product varieties do you estimate around the market?

2. What is the notion of the platonic dish? How did Howard Miscowitz challenge this notion?
3. How does the speaker define communities in a agrarian society? How did this definition change during the industrial revolution?
4. What does the speaker say has happened to the producing of goods over the last 50 or 60 years? What does this mean?

Answer 1

Economists debate the value of product variety in a market-oriented economy, with critics labeling the vast range of products as socially wasteful while proponents value the consumer benefits of product differentiation.

Step-by-step explanation:

Economists debate whether a market-oriented economy produces the optimal amount of product variety. Critics argue that excessive product differentiation, such as in the number of athletic shoes, breakfast cereals, or automobiles, is socially wasteful. They believe that most people would be just as satisfied with fewer options that are cheaper to produce and sell. On the other hand, proponents advocate that consumer benefits from differentiated products justify the practices of a market-oriented economy, suggesting that no one is coerced into buying these products, and that such variety caters to diverse consumer wants and needs.

The discussion on product variety touches on monopolistic competition and the role of advertising in it. The issue remains unresolved because it challenges economists to define what 'optimal variety' means, and to reconcile differing perspectives on the value of variety to consumers. These differing perspectives can influence economic policies and business strategies.