Although washing machines and refrigerators are not close substitutes as far as consumers are concerned,we can consider them to be part of the same industry because of supply-side substitutability.

Question

Quizplus · Accepted Answer

Supply-side substitutability means that the same companies can manufacture both washing machines and refrigerators using similar production processes and technologies. Therefore, they can be considered part of the same industry from a supply perspective, even though they are not close substitutes from a demand perspective.

Although Washing Machines and Refrigerators Are Not Close Substitutes as Far