Answer:
∴ Constant of Proportionality is 32
Step-by-step explanation:
Here Given;
(equation-1)
(equation-2) (divide with 'g' on both side)
We know,
The Constant of Proportionality equation is given;
(equation-3)
Where 'k' is known as Constant of Proportionality.
Comparing equation-1 and equation-3;
and
Now equation-2 become;
Plug and
in above equation;
(equation-4)
By comparing equation-2 and equation-4;
So Constant of Proportionality is 32
Answer:
The profits for firma A and B will decrease.
Step-by-step explanation:
Oligopoly by definition "is a market structure with a small number of firms, none of which can keep the others from having significant influence. The concentration ratio measures the market share of the largest firms".
If the costs remain the same for both companies and both firms decrease the prices then we will have a decrease of profits, we can see this on the figure attached.
We have an equilibrium price (let's assume X) and when we decrease a price and we have the same level of output the area below the curve would be lower and then we will have less profits for both companies.
