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Global crossing introduce the new technology

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Global Crossing is a major provider of fiber optic cable capacity...having a 70% market share. It is in possession of a technology that has the capability of expanding capacity (output) of its product by 20% without any increase in Global Crossing's cost. The overall market elasticity of demand for such capacity is .-06.

What will happen to the market price should Global Crossing introduce the new technology assuming other competitors do not react to Global Crossing's action?

Show how you arrived at answer

Reference no: EM131270071

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