Use figure below to answer the following questions. a.Would firm 1's profit increase or decrease if the equilibrium moved from point A to point B?
b.Would firm 2's profit increase or decrease if the equilibrium moved from point A to point B?
c.As the manager of firm 1,propose a strategy that would increase both the market share and the profits of firm 1-that is,a strategy that moves the market equilibrium from point A to point B.

Question

Use figure below to answer the following questions.  a.Would firm 1's profit increase or decrease if the equilibrium moved from point A to point B?
b.Would firm 2's profit increase or decrease if the equilibrium moved from point A to point B?
c.As the manager of firm 1,propose a strategy that would increase both the market share and the profits of firm 1-that is,a strategy that moves the market equilibrium from point A to point B.

Quizplus · Accepted Answer

The Answer of Use figure below to answer the following questions.  a.Would firm 1's profit increase or decrease if the equilibrium moved from point A to point B?
b.Would firm 2's profit increase or decrease if the equilibrium moved from point A to point B?
c.As the manager of firm 1,propose a strategy that would increase both the market share and the profits of firm 1-that is,a strategy that moves the market equilibrium from point A to point B.

Use Figure Below to Answer the Following Questions