Explain the greatest value-created

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-Two firms, Alpha and Beta, are competing in a market in which consumers preferences are identical. Alpha offers a product whose benefits B Is equal to $100 per unit. Beta offers a product whose benefit B is equal to $75 per unit. Alphas average cost C is equal to $60 per unit, while Betas average cost is equal to $50 per unit.

-Which firms product provides the greatest value-created?

-In an industry equilibrium in which the firms achieve the firms consumers surplus parity, by what dollar among with the profit margin ( P - C ) of the firm that creates the greater amount of value exceed the profit margin of the firm that creates the smaller amount of value? Compare this amount to the difference in the profit margins and difference in value-created between the two firms.

Reference no: EM133084842

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