Garmin is a technology company that specializes in GPS technology for automotive, aviation, marine, outdoor, and sports activities. Assume they have resources that they want to allocate between the production of GPS smartwatches and fitness trackers.
With reference to this:
1.1 Explain how Garmin can use a production possibilities frontier to illustrate the various combinations of the output of smartwatches and fitness trackers.
1.2 Assume that Garmin has obtained a new technique to produce fitness trackers more efficiently. Critically discuss how the PPF can be used to illustrate that.
1.3 Justify the importance of price elasticity of demand to pricing managers of Garmin.
1.4 With the aid of examples applicable to Garmin, explain the difference between explicit and implicit costs.
1.5 Garmin smartwatches may be considered part of an oligopolistic market structure with its main competitors being Fitbit, Huawei, Samsung, and Xiaomi. Propose the type of demand curve that would be faced by Garmin.