Consider a market comprised of three firms firm 1 produces


Consider a market comprised of three firms. Firm 1 produces and sells 23 units per period. Firm 2 produces and sells 19 units per period, while firm 3’s periodic production and sales are 15 units. The (inverse) market demand is estimated to be: P = 100−Q, where Q = total output =q1+ q2+ q3 Determine the market price and the elasticity of market demand as well as the market share of each firm. Now determine each firm’s marginal cost. What relation do you find between marginal cost and market share?

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Business Economics: Consider a market comprised of three firms firm 1 produces
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