Find different incentive of market


Global Crossing is a major provider of fiber optic cable capacity...having a 70% market share. It is in possession of a technology that has the capability of expanding capacity (output) of its product by 20% without any increase in Global Crossing's cost. The overall market elasticity of demand for such capacity is .-06. Elasticity of demand facing Global Crossing is -.857. Question: If Global Crossing had only 20% of the market, would it have a different incentive...how is this calculated?

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Microeconomics: Find different incentive of market
Reference No:- TGS047810

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