Answer to Question #128101 in Microeconomics for Noluthando Charity Makhanya

Question

Two firms dominate the cinema industry in South Africa: Ster‐Kinekor and Nu Metro. Although these firms essentially offer a homogeneous product, each firm attempts to differentiate itself in the eyes of customers. 

Q.4.2 Explain the concept of non‐price competition in the context of the cinema industry using examples to illustrate your answer.

Q.4.3 Government may prevent possible abuse of market power by these firms within the industry. How would the government achieve this?

Answer 1

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