1. It takes the Boeing Company 4 to 5 years, on average, to develop a new aircraft model, but it only takes around 3 months for Tide to put out a deter-

gent product with a different scent, which is considered a new product. Why is the development faster? Are there more varieties of detergent product than airplanes?

2.

Use the following information to work on Problems 8 and 9,

Take a look at Apple's new special edition iPhone 7 The mobile company Apple will release a new product in May 24, a special version of its iPhone 7 and 7 plus whose cover is red. The company says that this is to commemorate their cooperation with Red. And it is going to give a portion of profits from this product to this AIDS-fighting organization.

Source: TIME, March 21, 2017

Consider the special features of a monopolistic competitive market, and explain why a change in the cover color would bring a big increase in Apple's sales. Why are there so many varieties in the mobile industry?

Why would Apple spend so much on advertising, giving away some of its profits from selling its phones to Product Red, an organization that raises

awareness and funds to help eliminate HIV/AIDS in eight African countries?