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Nonprice Competition

by Jadrian

This clip shows Walter’s preference for producing superior products. In an inspired scene, Walter states: “You and I will not make garbage products. We will produce a chemically pure and stable product. One that performs as advertised. No adulterants. No baby formula. No chili powder.”

Why should Walter care about how his product performs? Why should product quality matter, especially when traded in a black market characterized by a relatively inelastic demand?

Product differentiation and quality, customer satisfaction, monopolistic competition, and market power can be discussed using this scene. As the show progresses, for example, viewers learn that Walter’s product is the best in the market, highly sought after, and blue. This last characteristic is especially important when learning about the white-colored competing methamphetamine. Product characteristics shape its substitutability and determine the elasticity of its demand or why brand products are often priced differently from generic products.

Breaking Bad -- No More Chili P

Walter will only make pure meth, no mixers

from Breaking Bad (2008)
Creator: Vince Gilligan
Distributor: Netflix
Posted by Jadrian
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