1.Suppose that new mobile phones were introduced in the market by three companies at the same time. When they were introduced, each company had an equal share of the market, but during the first year the following changes took place.

i)Company A retained 90% of its customers, lost 3% to B and 7% to C

ii)Company B retained 70% of its customers, lost 10% to A and 20% to C

iii)Company C retained 80% of its customers, lost 10% to A and 10% to B

Assuming that no changes in the buying habits of the customer occur

i)What are the market shares of the three companies at the end of the first year and second year?

ii)What are the long run market shares of the three companies?