Although Washing Machines and Refrigerators Are Not Close Substitutes as Far

question 30

True/False

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.

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Definitions:

Common Resources

Goods that are non-excludable and rivalrous, where usage by one person diminishes others' ability to use them, often leading to overuse.

Rival In Consumption

A characteristic of a good or service that means its use or consumption by one individual prevents simultaneous use or consumption by other individuals.

Fire Protection

The study and practice of mitigating the unwanted effects of potentially destructive fires.

Rivalry In Consumption

The property of a good whereby one person’s use diminishes other people’s use.