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Microeconomics II
book

Microeconomics II

by D.N. Dwivedi
August 2011
Intermediate to advanced content levelIntermediate to advanced
368 pages
14h 51m
English
Pearson India
Content preview from Microeconomics II
Price and Output Determine Oligopoly 133
determined by nding the output of each rm at which their individual MR is equal to industry
MC. A horizontal line drawn form point C thought MR
B
and MR
A
determines their quota. As
panel (a) shows market share for rm A is determined at OQ
A
and panel (b) shows market share
of rm B at OQ
B
. us, the industry output OQ is shared between the two rms A and B, as
OQ
A
and OQ
B
, respectively. Note that OQ = OQ
A
+ OQ
B
. At output OQ
A
, MC of rm A equals
industry’s marginal cost, MC, and at output OQ
B
, MC of rm B equals industry’s MC. us,
under quota system, the quota for rms A and B would be xed as OQ
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Publisher Resources

ISBN: 9788131797655