Which firm is more likely to lower its price

Reference no: EM131109584

Suppose we have an industry with two firms producing the same product. Firm A produces 90 units, while firm B produces 10 units. The price in the market is $100, and both firms have marginal costs of production of $50.What incentives do the two firms have to lower prices as a way of trying to get consumers to switch the firm they buy from? Which firm is more likely to lower its price?

Reference no: EM131109584

Questions Cloud

Explain how the bureau of labor statistics : Explain how the Bureau of Labor Statistics determines who is unemployed and how the unemployment rate is calculated. How might the growth of the number of discouraged workers be reflected in the unemployment rate? How might the unemployment rate be i..

Assuming all parties performed in the order : Tom and Zeke go out to a restaurant for dinner. Tom orders a steak and Zeke orders lasagna. After they've finished eating, they pay their bill. Assuming all parties performed in the order they were required to under this contract, which of the follow..

Design a memory management scheme for a 48 bit architecture : Design a memory management scheme for a 48 bit architecture, using various types of paging and/or segmentation described in this week's readings

Build a flowchart that models a complete java program : Using a flowcharting tool of your choice, build a flowchart that models a complete Java program called PasswordChecker that gets a String from the user at the command line and checks whether the String, called password, conforms to the password..

Which firm is more likely to lower its price : What incentives do the two firms have to lower prices as a way of trying to get consumers to switch the firm they buy from? Which firm is more likely to lower its price?

Hon is the honeywell international : HON is the Honeywell International. The tutor must include all the tabels that he used to do the calculations. Just include them at the end of the paper and he should prefer to them in side the text when answering the questions

When they reach the social security earnings test limit : If older workers have a tax elasticity of labor supply equal to 0.20, by how much will their work activity decline when they reach the Social Security earnings test limit?

What is copyonwritearraylist : What is CopyOnWriteArrayList? How it is different from ArrayList in Java

In the long run equilibrium- monopolistic competitor : In the long run equilibrium, a monopolistic competitor will produce to the point at which A) actual average total costs are at the minimum of possible ATC B) actual average total costs are higher than the minimum of possible ATC C) resources are used..

User Account

All Pages