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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
138 Chapter 5
demand for its own product. us, at a given price the market share of the dominant rm equals the
market demand less the share of small rms.
For example, when market price is set at OP
3
, the total supply by the smaller rms is P
3
E which equals
the market demand. erefore, at price OP
3
, the market le for the dominant rm is zero. When price
falls to OP
2
, the demand for dominant rm’s product is CF = P
2
F P
2
C. Following this process, the
market share of the dominant rm at other prices can be easily obtained.
Note that the gap between demand curve DD
M
and supply curve P
1
S
S
below point E in Figure 5.13(a)
measures the dema ...
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Publisher Resources

ISBN: 9788131797655