5- a) There are 3 firms competing over quantities. The market share of firm 1 is 0.3 and its marginal cost is 1. If the price elasticity of demand is -3, what is the equilibrium price? b) If the share of the other two firms are 0.1 & 0.6 respectively calculate the Herfindahl index.

5- a) There are 3 firms competing over quantities. The market share of firm 1 is 0.3 and its marginal cost is 1. If the price elasticity of demand is -3, what is the equilibrium price? b) If the share of the other two firms are 0.1 & 0.6 respectively calculate the Herfindahl index.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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