Asked by
Shakti Prasad
on Nov 30, 2024Verified
The market share is maximized for both firms if they locate at the point(s)
A) a = 1 - 3b;b = 1−a3\frac { 1 - a } { 3 }31−a
B) a = ;b = 1 - 3a 1−b3\frac { 1 - b } { 3 }31−b
C) a = 0;b = 1
D) a = ;b = 12\frac { 1 } { 2 }21 12\frac { 1 } { 2 }21
Market Share
The percentage of an industry or market's total sales that is earned by a particular company over a specified time period.
Optimal Location
The most favourable geographical position for a business or facility based on factors like cost, accessibility, and market demand.
Firms Locate
The process by which businesses decide where to establish their operations, influenced by factors such as market access, costs, regulations, and infrastructure.
- Examine how the distribution of demand affects the selection of company sites and the division of market share.
Verified Answer
AH
Learning Objectives
- Examine how the distribution of demand affects the selection of company sites and the division of market share.