Jim Fox, an executive for Rentall Trucks, could not believe it. He had hired one of the town's best law firms, Folley, Smith, and Christensen. Their fee for drawing up the legal contracts was over $50,000. Folley, Smith, and Christensen had made one important omission from the contracts, and this blunder would more than likely cost Rentall Trucks millions of dollars For the hundredth time, Jim carefully reconstructed the situation and pondered the inevitable. Rentall Trucks was started by Robert (Bob) Renton more than 10 years ago. It specialized in renting trucks to businesses and private individuals. The company prospered, and Bob increased his net worth by millions of dollars. Bob was a legend in the rental business and was known all over the world for his keen business abilities. Only a year and a half ago, some of the executives of Rentall and some additional outside investors offered to buy Rentall from Bob. Bob was close to retirement, and the offer was unbelievable. His children and their children would be able to live in high style off the proceeds of the sale. Folley, Smith, and Christensen developed the contracts for the executives of Rentall and other investors, and the sale was made.

1. What will the market shares be in one month if these changes are made? If no changes are made?

2. What will the market shares be in three months with the changes?

3. If market conditions remain the same, what market share would Rentall have in the long run? How does this compare with the market share that would result if the changes were not made?