Question: 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 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 + .1QD, and many small firms, with a total supply function: QS = 20 + P. (a) Derive the demand equation for the dominant oligopoly firm. 1 (b) Determine the dominant oligopoly firm's profit-maximizing output and price. (c) Determine the total output of the small firms.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

The demand function for an oligopolistic market is given by the equation, Q = 200 - 4P, where Q is the market quantity demanded and P is price. The industry has one dominant firm and many small...

The demand function for an oligopolistic market is given by the equation, Q=1804P, where Q is the market quantity demanded and P is price. The industry has one dominant firm and many small firms. The...

The demand function for an oligopolistic market is given by theequation, Q = 275 4P, where Q is quantity demanded and P is price(Note: inverse demand for the dominant firm here is P = 50 - .2Q).The...

Could some one help me to solve those questions? thanks Use the following statements (#1 - #4) to answer the following question. For a monopolist to practice price discrimination, it must be able to:...

Answer the following questions The simultaneous-move game (shown below) is played twice, with the outcome of the first stage observed before the second stage begins. There is no discounting. The...

Suppose there is a perfectly competitive industry in Dubai, where all the firms are identical. All the firms in the industry sell their products at 100 AED. The market demand for this product is...

1. (Chapters 3 and 4) Suppose that the demand for used textbooks in Halifax is given by the equation Q= 90- 2P, while the supply of used textbooks is given by the equation Q where quantity is in...

help solving _NVL_midterm_questi... Problem 3 (20 marks) In Australia, the demand curve for the economics textbook titled "Economics for Down-under Students" published by Emu University Press is...

25 points Save Answer The potassium industry is perfectly competitive. Firms act as price takers and each firm in the industry operates only one plant. The following table shows data on incumbent...

Consider a perfectly competitive market where the demand for the good is given by Q=704-8p, where Q denotes the quantity demanded at price p. On the supply side, the industry supply function is given...

Nini, Nana and Nunu are in partnership, sharing profits and losses in the ratio of 3:2:1.The partnership agreement provides that: (i) Interest on capital is to be allowed to all partners at 20% per...

Richmond Corporation has 50,000 shares of 20 outstanding common stock. The current fair market value of the stock is 32 per share. The company divides its common stock on a 4 to 1 basis. Nominal...

On February 1 , 2 0 2 3 , Kate bought 1 0 0 ABC common shares at a total cost of $ 5 , 0 0 0 . On December 2 9 , 2 0 2 3 , ABC Inc. announced $ 1 . 0 0 dividend per share with ex - date of January 1...

What was Walgreen s big news in November 2 0 1 9 ? Group of answer choices Considering a leveraged buyout from current alliance An errant calculation in stock demand allowing significant product...

What is the message frequency?

What is the schedule for this project?

Who is responsible for this project?