This formula applies to any type of firms in the output market 1. Competitive Output Market Competitive industry: Many firms: Firms are independent of each other in decision making Identical product: Each firm faces a horizontal demand curve at the market price Free entry: Zero profit in the long run A competitive firm takes the market price as given. For a given market price p
Complaint management is an Investment Cost of customer acquisition vs retention Loyal Word of mouth(p positive or negative) Information for design changes Compensation may exceed price
