Many MBAs who ventured into the ??dot-com?? world of the late 1990s found themselves unemployed by 2001 as many firms in that industry ceased to exist. However, during their tenure with these companies, these managers gained valuable skills in how to operate within a highly competitive environment. Based on the numbers in Table 7??3 in this chapter, which industries represent the best match for these managers?? expertise? Looking at the industries listed in Table 7??3, what factors give rise to the varying levels of marketpower?

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Own Price Elasticity of Demand for Representative Firm's Product Own Price Elasticity of Market Demand Rothschild Industry Index Food Tobacco -1.0 -3.8 -1.3 0.26 -1.3 1.00 Textiles -1.5 -1.1 -1.5 0.32 0.27 -47 Apparel Paper Printing and publishing -4.1 -1.7 0.88 -3.2 -1.5 -1.7 -1.8 0.56 Chemicals -1.5 -1.5 -1.8 1.00 Petroleum Rubber 0.88 -2.3 0.78 -2.3 Leather -1.2 0.52 Scurce: Matthew D. Shaptro, "Measuring Markel Power in U.S. Industry," Natlonal Bureau of Economic Research, Working Paper No. 2212, 1987.