Homework Answers
The leader should set price equals to its MC.
The MC for rival depends on the quantity produced by him he will also set its price at 4, this will happen when he produces 6.32 units of the good and at price 4 the total demand is 960 units. So, the firm will be able to get a much higher share of the market at this price and the rival cannot increase the quantity as this will also increase its MC, and result in an overall loss. The rival will never set its price less than 4 because he will be worse off in that case by selling lesser quantity.
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3. In a duopoly, one of the market rivals intends to announce a price catalogue. His...
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Please use own words. Thank you.
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3. Marvin is one of the few remaining snowboard producers in Canada. He produces his snowboards in a small factory in Guelph, Ontario. However, price competition in the market for snowboards has much intensified over the last 10 years, and Marvin knows that he needs to considerably cut his own production costs to stay in business Marvin is considering procuring the raw boards for his snowboards from an external supplier, instead of producing them in his own factory. He knows...
I have this case study to solve. i want to ask which
type of case study in this like problem, evaluation or decision? if
its decision then what are the criterias and all?
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Please use own words. Thank you.
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