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.

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