Suppose the larger firm of a duopoly has sales of $900 million and the smaller firm has sales of $100 million.The market share of the larger firm is

Question

Quizplus · Accepted Answer

To find the market share of the larger firm, we need to add up the sales of both firms and then divide the larger firm's sales by the total market sales.

Total market sales = $900 million + $100 million = $1000 million

Market share of larger firm = ($900 million ÷ $1000 million) x 100% = 90%

Therefore, the market share of the larger firm is 90%.

Suppose the Larger Firm of a Duopoly Has Sales of $900