PROBLEM I. Suppose that, in a market of a certain product, there is a single dominant...

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PROBLEM I. Suppose that, in a market of a certain product, there is a single dominant firm with a cost function C(QcQ, where c > 0 is a constant, and the competitive fringe with a supply function Qf(p) = p-120 The market demand function is given by QM(p) = 600-3p. Q1. When c= 100, the dominant firms profit-Inaximizing quantity is (a) 100 (b) 144 (c) 180 (d) 160 (e) 120 Q2. When c- 100, the equilibrium market price of the product is (a) 120 (b) 140 (c) 180 (d) 210 (e) 160 Q3. Whenc 100, what is the market share of the dominant firm? (Choose the closest (a) 89% (b) 92% (c) 80% (d) 95% (e) 97%

Q4. Under what condition of c does the competitive fringe produce nothing at the equilibrium? (a) c^ 40. (b) c 90. (c) c2 100. (d) 100 < c < 40. (e) c 60.

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PROBLEM I. Suppose that, in a market of a certain product, there is a single dominant...

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