What is the effect on the contribution margin

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Suppose that there is a decrease in the demand for push lawn mowers as people switch over to ride-on mowers and the competitive price of push lawn mowers falls to $145 per unit. What is the effect on the contribution margin (i.e., per unit contribution) of each company? How would this affect the short run output decision of each company? Explain clearly

Reference no: EM133125085

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