Questions 1 through 5 refer to the following scenario - 1...

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1. Questions 1 through 5 refer to the following scenario. Suppose three firms face the same total market demand for their product. This demand is: Price (P) Quantity (Q) $80 20,000 70 25,000 60 30,000 50 35,000 Suppose further that all three firms are selling their product for $60 and each has about one-third of the total market. What is the amount of total revenue each firm receives, in dollars?
1 Now assume that one of the firms, in an attempt to gain market share at the expense of the others, drops its price to $50. The other two quickly follow suit. What is the amount of total revenue each firm now receives, in dollars, rounded to the nearest dollar?
1 What impact has the price drop had on the revenue of each firm?
1 If the firms had all raised their prices to $70 instead of lowering price, what would be the amount of total revenue each firm would have received, in dollars, rounded to the nearest dollar?

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