Tom pranked Anne by putting glitter in her laundry detergent and she decides to return the favor by putting glitter in Tom’s moisturizer. She pitches it as a new product gimmick, but Tom supports the idea of this new product, “Sparkle Skin.”
See more: entrepreneurship, monopolistic competition, product differentiation
Ben is getting a little tired of Pawnee, but he’s only two stamps away from his “free” meatball sub. Unfortunately, his card is expired. He’s a bit sad about it, but those stamps are essentially a sunk cost. The card itself is a good example of ways that firms price discriminate and offer discounts to bulk shoppers.
See more: free lunch,NSTAFL, opportunity costs, price discrimination, second degree price discrimination, sunk costs
Ron won’t endorse a product unless he uses it exclusively and actually believe in it. Firms in imperfect markets often use celebrity advertising because it serves as a signal that the person selling the product actually believes in the product.
See more: advertising, monopolistic competition, product differentiation
While Leslie Knope is running for city council, the Parks Department needs to get a lot of vans to help people get to the polls. A local van rental company realizes they have a monopoly over the market for these white vans and this recent surge in demand has given them the opportunity to capitalize.
See more: bargaining power, bidding war, demand, demand shifts, imperfect competition, market power, monopoly, rent seeking, supply