Tom Weisskopf asked what would explain the fact that, despite
the lower cost of producing Nikes etc., the price hasn't fallen
and monopoloy profits arebeing made despite
potential competition.
One wonders if this does not fit very nicely into Sweezy's
kinked (oligopoly) demand curve where, despite falling marginal
costs, prices in the oligopoly sector are retained to prevent
price competition. The hiring of Jordan et al. merely ensures
that Nikes and their oligopolistic rivals have a *different*
product from no-name competitors.
Paul Phillips,
U of Manitoba
