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MrSmith Earned a Salary of $5,000 in 1980,while His Son

question 120

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Mr.Smith earned a salary of $5,000 in 1980,while his son earned a salary of $8,000 in 2010.If the price index was 100 for 1980 and 198 for 2010,whose salary was worth more? Explain your answer.


Definitions:

Fast-Second Strategy

An approach by a dominant firm in which it allows other firms in its industry to bear the risk of innovation and then quickly becomes the second firm to offer any successful new product or adopt any improved production process.

Gigantic Corporation

A term used to describe extremely large and influential multinational corporations, often with significant power over markets and economies.

Successful Innovations

Novel ideas, products, or technologies that have been successfully developed and accepted in the market, leading to commercial success or widespread adoption.

Monopolistic Competitors

Firms considered monopolistic competitors offer varied, yet somewhat substitutable, products to consumers, enabling them to have some degree of market power in their respective industries.

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