Question

The demand function for an oligopolistic market is given by the equation: Q=180-4P The industry consists...

The demand function for an oligopolistic market is given by the equation: Q=180-4P The industry consists of one dominant firm whose marginal cost function is: MCd=12+0.1Qd and a number of smaller firms whose supply function is: Qs=20+P

a. Derive the demand equation for the dominant oligopolist.

b. Estimate the profit maximizing output and price for the dominant oligopolist .

c. Estimate the price and output for the smaller firms.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

If you are satisfied with a answer plz upvote thank you i really need that

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Assume an oligopolistic market with one large dominant firm. The dominant firm's marginal cost is given...
Assume an oligopolistic market with one large dominant firm. The dominant firm's marginal cost is given by the following equation: MC = 0.48 Q The market demand is the following: QD = - 14 P + 309 The supply of the smaller firms combines is given by the following equation: QS = 16 P + 192 What is the profit-maximizing amount of output for the dominant firm? ________________________________________________________________ Assume a duopoly market with quantity competition. The market inverse demand is...
Suppose that a dominant firm faces fringe competition with capacity K=12 units, and market demand Q=2096-4P....
Suppose that a dominant firm faces fringe competition with capacity K=12 units, and market demand Q=2096-4P. Suppose further that the dominant firm and fringe competition are able to produce with total costs given by C(Q)=20Q. Assume that the dominant firm and fringe competition are profit maximizers. a. The marginal cost of a unit of output for the dominant firm is __________ b. The output of the fringe competition is ___________ units. c. The profit-maximizing level of output for the dominant...
Consider a Monopoly. Suppose the Demand function for the industry is Q = 440 − 4P....
Consider a Monopoly. Suppose the Demand function for the industry is Q = 440 − 4P. The total cost (TC) function for the firm is TC = 2.25Q^2 + 1,600. The marginal revenue (MR) function is then MR = 110 – 0.5Q. If the marginal cost (MC) function for the firm is MC = 4.5Q, what is the price the Monopoly will charge? Group of answer choices $4.50 $104.5 $110 $440
Management has estimated a competitive industry's demand function to be: Q= 4,500 - 25P There are...
Management has estimated a competitive industry's demand function to be: Q= 4,500 - 25P There are 90 identical profit-maximizing, price taker firms in the industry, each with an average variable cost curve of Ave = $8 +$0.75Q and fixed costs of $600 per hour. Q is the output per hour for the firm. Find the supply function, its market clearing price, the profit maximizing output of the typical firm, and its hourly profit.
An industry consists of many identical firms, each with the cost function C(q)=100+30q-8q^2+q^3 Derive the average...
An industry consists of many identical firms, each with the cost function C(q)=100+30q-8q^2+q^3 Derive the average cost, average variable cost, and marginal cost curves of a firm. Compute the outputs at which the AC and AVC curves reach their minimums. If the market price is $40, and each firm is a price-taker, how much output will each firm supply? How much profit or loss is each firm making at this price? Show this area on the graph (label the three...
The market demand for coins is Q=800-3P. Assume there is a dominant firm and a set...
The market demand for coins is Q=800-3P. Assume there is a dominant firm and a set of fringe firms. The dominant firm’s total costs are TC=80Qd and the fringe supply is Qf= -200 + 2P. 1. Find the dominant firm’s residual demand curve. 2.Find the dominant firm’s profit-maximizing output and price. 3.Find dominant firm profits. 4.Find fringe firm output and profits.
consider market with demand function q = 200 - 2p. In this market there is a...
consider market with demand function q = 200 - 2p. In this market there is a dominant firm and a competitive fringe of small firms. The competitive fringe takes the price of the dominant firm as given and offer an aggregate output S = p - 70; (p > 70), where p is the price quoted by the dominant firm. The residual demand is covered by the dominant firm. Determine the optimal solution for the dominant firm assuming that its...
The demand equation for a product sold by a competitive firm in UAE is given by...
The demand equation for a product sold by a competitive firm in UAE is given by the following equation and firms sell their product at 100 AED: Q = 500 – 10P The total cost equation of the firm is given by the following equation: TC = 80 + 20Q + 0.2Q2 Derive the inverse demand function. (1 Point) What is the firm’s MC function? (1/2 Point) What is the firm’s MR function? (1/2 Point) What is the firm’s profit...
Assume that the manufacturing of barbie doll is a perfectlycompetitive industry. The market demand for...
Assume that the manufacturing of barbie doll is a perfectly competitive industry. The market demand for barbie doll is described by a linear demand              function :Qd = 6000 – 50P   ; P = price of a barbie doll.                              9                               There are fifty manufacturers of barbie dolls. Each manufacturer has the same             production costs given as TC(q) = 100 +q2 + 10q ; q = quantity of barbie doll.     Show that a firm in this industry maximizes profit by producingq = (P -10)...
The demand equation for a product sold by a competitive firm in UAE is given by...
The demand equation for a product sold by a competitive firm in UAE is given by the following equation and firms sell their product at 100 AED: Q = 500 – 10P The total cost equation of the firm is given by the following equation: TC = 80 + 20Q + 0.2Q2 a) Derive the inverse demand function. (1 Point) b) What is the firm’s MC function? (1/2 Point) c) What is the firm’s MR function? (1/2 Point) d) What...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT