FourSquares Labs Inc

question 7

Essay

FourSquares Labs Inc. is a company in the forefront of the mobile advertising by integrating social media with marketing. "Foursquare" itself is a game for the mobile phone that provides players incentives to check it at restaurants, bars, and retailers-broadcasting the location
of players to friends and potential advertisers.
1. What does this example illustrate about new technologies?
2. Why do managers need to know about new technologies?

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Definitions:

Decreasing-cost Industry

An industry where the cost per unit of output decreases as the scale of production increases.

Long-run Equilibrium Price

The price level at which the quantity supplied equals the quantity demanded, achieved over a period where all inputs can be varied by producers.

Increase in Demand

A situation where there is a rise in consumers' desire to purchase goods or services, leading to higher quantity demanded at every price level.

Constant Costs

Occur when the cost of producing an additional unit of a good does not change as the scale of production increases or decreases.