Essay
Use figure below to answer the following questions. 
a.Would firm 1's profit increase or decrease if the equilibrium moved from point A to point B?
b.Would firm 2's profit increase or decrease if the equilibrium moved from point A to point B?
c.As the manager of firm 1,propose a strategy that would increase both the market share and the profits of firm 1-that is,a strategy that moves the market equilibrium from point A to point B.
Correct Answer:
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a.Increase
b.Decreas...View Answer
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Correct Answer:
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b.Decreas...
View Answer
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