You are a new entrant in a market with just one Incumbent, who sells a roughly equivalent product. You Initially take on the followerrole when it comes to choosing the amount of your product to manufacture. In researching your market, you've collected substantialdata on prices and quantities, and asked your firm's analysts to determine as closely as possible the Inverse demand curve for themarket. They've reported back to you the following table.Price regressed on quantityCoefficientsstandard Errort-statP-value4.68992E-791.55351E-60Upper 9st14718.05261Louer 95%InterceptQuantity13693.75315516.33538726.52104329-21.1810s89612677.45369-2.1445495280.101248313-2.3438359-1.945263156Instruction: Round all of your answers to the nearest hundredth.a. Report the estimated Inverse demand curve for the market, and comment on whether it is precisely estimated.P=Both estimated coefficients are statistically significantb. Suppose your marginal costs are $2.000 and the Incumbent produces 4,000 units. What is the profit maximizing quantity you shouldproduce?unitsc Suppose your margtnal costs are $2,000 and the incumbent's marginal costs are $1,500. What will be the market price if you and theIncumbent produce at your respective profit maximizing levels?

A Duopoly Market is defined as a market where there are two or more sellers. There are three types…

Answered: You are a new entrant in a market with…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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