2. Two car manufacturers, Nissan and Honda, have fixed costs of $1 billion and marginal costs of...

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2. Two car manufacturers, Nissan and Honda, have fixed costs of $1 billion and marginal costs of $10,000 per car. If Nissan produces 50,000 cars per year and Honda produces 200,000, calculate the average production cost for each company. On the basis of these costs, which company’s market share do you think will grow in relative terms? (LO3)

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Principles Of Microeconomics

ISBN: 9781264250387,9781264250448

8th Edition

Authors: Robert H. Frank , Ben Bernanke , Kate Antonovics , Ori Heffetz

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