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 mc_d=10 and the total cost function is given by 10q_d.

What quantity would Winnie’s Wind Turbines supply in the wind turbine market?

What would be the market price for a wind turbine?

What quantity would the fringe supply?

Answer rating: 100% (QA)

To solve this problem we need to find the equilibrium quantity and price in the market First lets fi... View the full answer