Which companys marker share do you think will grow

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Two car manufacturers, Saab and Volvo, have fixed costs of $1 billion and marginal costs of $10,000 per car. If Saab produces 50,000 cars per year and Volvo produces 200,000, calculate the average production cost for each company. On the basis of these costs, which company's marker share do you think will grow in relative terms?

Reference no: EM13220191

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