The movie You've Got Mail features a successful small bookstore competing with a new book superstore around the block.The big superstore offers deep discounts,while the small independent bookstore has better service and more knowledgeable staff.The movie best illustrates which of the following?
A) Small producers cannot compete based on costs.
B) Large producers offer differentiated products and compete most effectively through product differentiation.
C) Small producers offer differentiated products and compete most effectively through product differentiation.
D) The Meg Ryan character's bookstore best illustrates a perfectly competitive firm.
E) The Tom Hanks character's bookstore best illustrates a monopoly firm.

Question

Quizplus · Accepted Answer

The scenario in the movie best illustrates that small producers can compete effectively by offering differentiated products and better service. The small independent bookstore has an advantage in terms of knowledgeable staff and better service, which allows it to compete with the large book superstore that offers deep discounts. This highlights how small producers can differentiate their products and compete effectively through product differentiation.

The Movie You've Got Mail Features a Successful Small Bookstore