Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A market research firm has watched the rise and fall of many technology companies and has predicted that the variation of the proportion of future

A market research firm has watched the rise and fall of many technology companies and has predicted that the variation of the proportion of future market share of three firms A, B, and C is determined by the following assumptions: Assumption 1: The variation of the proportion of participation that remains in company A is given by the assumption that 60% of the total participation remains in the company A plus 15% of the stake remains in company B plus 25% of the stake stays with company C. Assumption 2: The variation of the proportion of participation that remains in company B is given by the assumption that 6% of the total share remains in company A plus 90% of the interest remains in company B plus 4% of the interest stays with company C. Assumption 3: The variation of the proportion of participation that remains in company C is given by the assumption that 18% of the total share remains in the company A plus 15% of the stake remains in company B plus 67% of the stake stays with company C.  Also, suppose that the initial market share of the three companies is 40%, 12%, and 48% respectively. Set up a system of linear differential equations and solve it to find the share of forecast market that will remain in each of the companies after the 55 months and graphically represent the change in proportions of each company during a 180 month period.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Explain why the bid-ask spread is a transaction cost.

Answered: 1 week ago

Question

Presentation Aids Practicing Your Speech?

Answered: 1 week ago