This is pretty simple, as it means firms get more efficient as they are more experienced and learn more. Nike has gained experience with their clothes and shoes so they got smarter and started making products that help with the condition of the weather. For example, Nike has clothes that keep you cool in the heath or warm in the cold. Nike has also built up their name and been around so long that they have earned the right to sell their shoes for over $100. Even though their shoes cost hardly anything to make this company is allowed to sell their product for expensive prices and it still be social acceptable with people that will still buy these products. The extra revue is put to use to make more products, as well as innovate to newer
This is pretty simple, as it means firms get more efficient as they are more experienced and learn more. Nike has gained experience with their clothes and shoes so they got smarter and started making products that help with the condition of the weather. For example, Nike has clothes that keep you cool in the heath or warm in the cold. Nike has also built up their name and been around so long that they have earned the right to sell their shoes for over $100. Even though their shoes cost hardly anything to make this company is allowed to sell their product for expensive prices and it still be social acceptable with people that will still buy these products. The extra revue is put to use to make more products, as well as innovate to newer