Reference no: EM13239935
Output MC ($)
Q, Abba, Babba, Cabba
1,000, 2,500, 2,600, 2,700
2,000, 2,400, 2,300, 2,500
3,000, 2,200, 2,100, 2,300
4,000, 2,000, 2,000, 2,100
5,000, 2,100, 2,200, 2,200
6,000, 2,200, 2,500, 2,300
Calculate the industry output and market share at the current price of $2,200, assuming the prices are stable and unlikely to change.
Assume the current prices in the market are challenged by the regulatory agency, resulting in a new maximum price of $2,000. How will this change the industry output and market share for each company?
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