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    The decision rule for perfect competion

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    Here is a problem that I am trying to figure out:

    Wkly. output Apple Airlines(A) Big Bird(B) Chancy Airlines, ltd.(C)
    1 $40 $20 $50
    2 30 25 40
    3 25 30 45
    4 35 35 55
    5 50 40 65
    6 60 50 75

    The current fare market price of $45 can't be raised. Thus P=MR=$45

    I have to
    a) calculate current industry output and the market share of each airline and
    b) calculate industry output if the introducation of a high speed passenger train forces airline industry prices down to $35.

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    Solution Preview

    The decision rule for perfect competion is MR=P>=MC
    I hope the values provided in the table are the MC values
    when P=45, A will ...

    Solution Summary

    The decision rule for perfect competion is utilized.