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ch9q15 You are a new entront in a market with...

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Accounting

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You are a new entront in a market with just one incumbent, who sells a roughily equivalent product You initially take on the follower role when it comes to choosing the amount of your product to manufacture. In researching your market, you've collected substantial data on prices and quantities, and asked your firm's analysts to determine as closely as possible the inverse demand curve for the market: They ve reported back to you the following table. Price regressed on quantity: Instruction: Round all of your answers to the nearest hundredth. a. Report the estimated inverse demand curve for the market, and comment on whether it is precisely estimated b. Suppose your marginat costs are $2,000 and the incumbent produces 4,000 units. What is the profit maximizing quantify you should produce? units: c. Suppose your marginal conts are \$2,000 and the incumbent's marginal costs are \$1,500. What will be the market price if you and the incumbent produce at your cespective protit maximizing levels

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