| Abstract: | Every supermarket provides many examples of attempts lo develop more economical standardized products which will attract additional customers while guaranteeing the user that the quantity will be acceptable. We assume this process involves development costs incurred in reducing the amount incorporated in a monopoly product of its dominant product-characteristic. A comparative dynamic analysis is used to explore the search for lower prices and higher output. The heightened vulnerability of the firm to market forces and some policy implications of the analysis are brought out. |
