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What is meant by the concept "firm effect?" What two brands represent great examples of this concept? Explain your rational.

User DaVince
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Final answer:

The concept of the firm effect refers to a firm's impact on the overall market or industry. Apple and Samsung demonstrate this concept in the smartphone industry.

Step-by-step explanation:

The concept of "firm effect" refers to the impact that a specific firm or brand has on the overall market or industry. It reflects the ability of a firm to influence market dynamics, such as pricing, competition, and consumer behavior. Two brands that exemplify the firm effect are Apple and Samsung in the smartphone industry. These two companies have a significant market share and their actions, such as product launches and pricing strategies, heavily impact the industry as a whole.

User Pablo Oliva
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