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Q. In the 1990s, five firms supplied amateur color film in the United States: Kodak, Fuji, Konica and Agfa also 3M. From a technical viewpoint, there was little difference in the quality of color film produced by these firms, yet Kodak's market share was 67 percent. The own price elasticity of demand for Kodak film was -2.0 also the market elasticity of demand was -1.75. Assume which in the 1990s; the average retail price of a roll of Kodak film was $6.95 also which Kodak's marginal cost was $3.475 per roll. Based on this information, discuss industry concentration, demand also market conditions also the pricing behavior of Kodak in the 1990s. Do you think the industry environment is significantly dissimilar today? Elucidate.
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