Question

Suppose that John Jones, Inc. is the dominant firm in the industry. Graphically depict how price, quantity, profits and welfare would change if John Jones, Inc. merged with a firm in the competitive fringe and there were no efficiency gains.
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Date dne tadl has has dhe alto deeline

answered by: ANURANJAN SARSAM
Add a comment
Know the answer?
Add Answer to:
Suppose that John Jones, Inc. is the dominant firm in the industry. Graphically depict how price,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 2. Consider a dominant firm in a market with a competitive fringe. The market demand curve...

    2. Consider a dominant firm in a market with a competitive fringe. The market demand curve is given by P = 100 − Q.The supply curve of the competitive fringe is perfectly elastic and given by P=Pf. The dominant firm has a marginal cost c where Pf > c (a) For what value of Pf is the presence of the competitive fringe binding on the dominant firm? (b) Suppose the dominant firm has c = 0 and the competitive fringe...

  • 12. Consider an industry with a dominant firm and a competitive fringe. The market demand for...

    12. Consider an industry with a dominant firm and a competitive fringe. The market demand for the product is given by P - 100 - 20 where P is the market price for the product, and Q is the total amount sold in the industry. The dominate firm's marginal cost is given by the equation MC-80, and the supply curve for the competitive fringe is Q-P/2. Use this information to find the Residual Demand curve faced by the dominant firm;...

  • Consider a market with demand curve ?=200−? and suppose that the industry consists of a dominant...

    Consider a market with demand curve ?=200−? and suppose that the industry consists of a dominant firm which has a constant marginal cost equal to $40 per unit. There are ten other fringe producers; each has a marginal cost curve ??=40+10?, where q is the output of a typical fringe producer. Assume there are no fixed costs for any producer. a. What is the supply curve of the competitive fringe? b. What is the dominant firm’s residual demand curve? c....

  • 1. Dominant firm with competitive fringe Consider a monopolist with costs MCs 2+0.1qa and ATC-2+0.059a facing...

    1. Dominant firm with competitive fringe Consider a monopolist with costs MCs 2+0.1qa and ATC-2+0.059a facing a market demand is P-28-0.1Q. At the price set by the dominant firm, what will be the output supplied by the fringe firms, combined and individually? Calculate. e. Calculate profits earned by the dominant and fringe firms. Comment on what you observe. Who earns more? How does the presence of competitive fringe affect the profit of the leading firm? f. Suppose that the dominant...

  • Suppose demand for wind turbines is Q = 110-3P, where P is the price. The dominant...

    Suppose demand for wind turbines is Q = 110-3P, where P is the price. The dominant producer in this industry is “Winnie’s Wind Turbines”. There are also a number of small price-taking firms that can be represented by the supply function S(P)=P-10. The marginal cost of production for the dominant firm is given by mcd=10 and the total cost function is given by 10qd. What quantity would Winnie’s Wind Turbines supply in the wind turbine market? What would be the...

  • The market demand curve is given by Q = 200-2p. There is one dominant firm, which sets the market...

    The market demand curve is given by Q = 200-2p. There is one dominant firm, which sets the market price and has a constant marginal cost of 5, and a competitive fringe of 10 price-taking firms, each of which has a marginal cost function MC (Q) = 10 +Q. Derive the equation of the dominant firm’s residual demand curve. What price will the dominant firm set to maximize its profits? At this price, how much does the competitive fringe produce?

  • 3. Suppose XYZ Company is a dominant firm in a particular industry. The demand curve for...

    3. Suppose XYZ Company is a dominant firm in a particular industry. The demand curve for this industry’s product is ? = 200 − 10?, where Q is the quantity demanded and P is the price. The supply curve for the small firms in the industry is ?? = 20 + 2?, where ?? is the total amount supplied by all the small firms combined. XYZ Company’s marginal cost is ?? = 2??, where ?? is XYZ Company’s output. Question:...

  • At&t is the dominant firm in the local telecommunication industry, which has a total market demand...

    At&t is the dominant firm in the local telecommunication industry, which has a total market demand given by Q = 100 - 2P. AT&T has competition from a fringe of four small firms that produce where their individual marginal costs equal the market price. The fringe firms each have total costs given by TCi = 10 Qi + Qi^2. If AT&T's total costs are given by TCa = 10 + 10 Qa, how much does the industry as a whole...

  • In a monopolistic competitive market for blood pressure monitor, suppose the market demand function for the monitor is P=160 – 3Q, where P is the price for monitor, Q and the quantity of monitor dema...

    In a monopolistic competitive market for blood pressure monitor, suppose the market demand function for the monitor is P=160 – 3Q, where P is the price for monitor, Q and the quantity of monitor demanded. Marginal cost of producing it is MC: P = 20 + Q, where P is the price of the monitor and Q is the quantity of the monitor sold. Use the Twice as Steep Rule, form the marginal revenue function. What are the price and...

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

    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 firm's profit-Inaximizing quantity is (a) 100 (b) 144 (c) 180 (d) 160 (e) 120 Q2. When c- 100, the equilibrium market price of the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT