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| Topic: |
Business
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| Number of pages / Number of words: |
8 / 2078 |
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Notably this is half of output under competition. If, on the other hand, Firm A produces 32 units, Firm B will now only be able to produce at 32 units less than the total quantity demanded. This can be demonstrated by the rightward shift of Firm B’s vertical axis by 32 units, making its origin now Qu and its demand curve BD...
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With demand curve BD, Firm B has a new marginal revenue curve in MR(32). The market now produces 64 units of output and Firm B operates where MR(32) equals MC. We can now see that Firm B’s output is totally dependent upon Firm A’s. Firm B will always produce half the difference between Firm A’s output and the output at which MC intersects D...
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General points of the essay
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