11. What would happen to equilibrium prices if market share was more sensitive to differences in prices, such that the same difference in price would lead to a larger change in market share?

1. Would price go up or down for Ice-Fili?
2. Would price go up or down for Filevskoye?

12. Think about marginal costs.

1. What would happen to Ice-Fili's equilibrium price if Filevskoye developed a new process that allowed them to reduce their marginal costs? Would it go up or down? A one-word answer is all that is required.
2. What would happen to Ice-Fili's equilibrium price if they developed a new process that allowed them to reduce their marginal costs? Would it go up or down? A one-word answer is all that is required.
3. If both cost reduction efforts reduced marginal costs by the exact same amount (in rubles), which would have a larger impact on Ice-Fili's equilibrium price from question 6a (in rubles), their own cost reduction effort or Filevskoye's? Why?