If we want to use Markov analysis to study market shares for competitive businesses
A)it is an inappropriate study.
B)simply replace the probabilities with market shares.
C)it can only accommodate one new business each period.
D)only constant changes in the matrix of transition probabilities can be handled in the simple model.

Question

Quizplus · Accepted Answer

To study market shares for competitive businesses using Markov analysis, we can replace the probabilities with actual market shares. This will enable us to track the changes in market shares of each business over time based on their current market share and the probabilities of transitioning to different market share levels.

If We Want to Use Markov Analysis to Study Market