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Thirty years ago the market for chicken was perfectly competitive. Then Frank Perdue bagan marketing chicken under his name.

a) How do you suppose Purdue created a brand name for chicken?what did he gain from doing so?

b) what did society gain from having brand-name chicken? What did society lose?

2007-11-09 18:00:02 · 1 answers · asked by Anonymous in Social Science Economics

1 answers

a) As I recall he fed them food that made them have a slightly yellow color, then advertised heavily claiming yellow chickens were "better" than pasty white ones. At some point Purdue chickens lost their color and are now pasty white like other chickens.
b)Some people find utility in thinking they are buying a superior product. Since generic chickens are still available at a lower price, I can't see much loss.

2007-11-09 18:37:52 · answer #1 · answered by meg 7 · 0 0

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