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?
Homework Answers
Add Answer to:
The market demand curve is given by Q = 200-2p. There is one dominant firm, which sets the market...
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....
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;...
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...
5. Assume a market demand curve of D(P) = 60−2P and a fringe supply curve of S(P) = P − 5. Assume a cost curve for the incumbent of C(Q) = 10 + 4Q. Find the market outcome in terms of price and quanti...
5. Assume a market demand curve of D(P) = 60−2P and a fringe supply curve of S(P) = P − 5. Assume a cost curve for the incumbent of C(Q) = 10 + 4Q. Find the market outcome in terms of price and quantity both for a monopolist not facing a fringe and a large dominant firm facing a fringe. Be sure to both solve for and graph the dominant firm’s demand and marginal revenue curves [in both the regions...
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...
2. (15 points). The demand function for an oligopolistic market is given by the equation, Q 180-4P, where Q is quantity demanded and P is price. The industry has one dominant firm whose margina...
2. (15 points). The demand function for an oligopolistic market is given by the equation, Q 180-4P, where Q is quantity demanded and P is price. The industry has one dominant firm whose marginal cost function is: MC 12+1Qp, and many small firms, with a total supply function: Qs 20+ P. (a) Derive the demand equation for the dominant oligopoly firm. (b) Determine the dominant oligopoly firm's profit-maximizing out- put and price. (c) Determine the total output of the small...
Suppose the inverse demand curve for a commodity in a perfectly competitive market takes the functional...
Suppose the inverse demand curve for a commodity in a perfectly competitive market takes the functional form: P (Q) = -.1Q + 10. Additionally, the firm’s marginal cost (MC) takes the following functional form: MC = 4 + 2Q. Recalling that a perfectly competitive firm is a price-taker in the market and its profit-maximizing output level (Qe) is always found by equating its price with its marginal cost: P = MC. Given all this, how much output (Qe) should the...
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...
A monopolist faces a market demand curve given by
A monopolist faces a market demand curve given by Q=70-P a. If the monopolist can produce at constant average and marginal costs ofAC-MC-6, what output level will the monopolist choose to maximize profits? What is the price at this output level? What are the monopolist's profits? b. Assume instead that the monopolist has a cost structure where total costs are described by C(Q) = 0.25Q2 - 5Q + 300. With the monopolist facing the same market demand and marginal revenue, what price-quantity combination will be chosen now...
A perfectly competitive market is described by the demand curve QD= 60 – 2P, and the supply curve QS = 5P – 10. A typic...
A perfectly competitive market is described by the demand curve QD= 60 – 2P, and the supply curve QS = 5P – 10. A typical firm has the total cost equation: C = 16 + 2QF + QF2. What is the equilibrium price and quantity in the market? Compute the firm’s total revenue, total cost, and total profit. MC = dC/dQF = 2QF + 2
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;...
2. (15 points). The demand function for an oligopolistic market is given by the equation, Q 180-4P, where Q is quantity demanded and P is price. The industry has one dominant firm whose marginal cost function is: MC 12+1Qp, and many small firms, with a total supply function: Qs 20+ P. (a) Derive the demand equation for the dominant oligopoly firm. (b) Determine the dominant oligopoly firm's profit-maximizing out- put and price. (c) Determine the total output of the small...
Most questions answered within 3 hours.
-
While rotating the tires on your car you notice a rock [mass =
0.1 Kg] stuck...
asked 27 minutes ago -
Using MARS simulator, write MIPS programs according to
the following scenarios: Receive a positive integer number...
asked 2 hours ago -
An object in front of a concave mirror has a real image that is
11.5 cm...
asked 2 hours ago -
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 4 hours ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 4 hours ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 4 hours ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 4 hours ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 4 hours ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 4 hours ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 4 hours ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 4 hours ago -
Would CuCO3 aqueous salt combined with calcium chloride
form a solid precipitate? If so, what would...
asked 4 hours ago