Solution) Firm A is the dominant firm in a market where industry demand is given by Qd= 48 - 4P. There are fou
Question: Firm A is the dominant firm in a market where industry demand is given by Qd= 48 - 4P. There are four "follower" firms, each with long-run marginal cost given by MC = 6+ Qf. Firm A's long-run marginal cost is 6.
a) Write the expression for the total supply curve of the followers (Qs) as this depends on price. (Remember, each follower acts as a price taker.)
b) Find the net demand curve facing firm A. Determine A's optimal price and output. How much output do the other firms supply in total?
Price: $2.99
Solution: The answer consists of 2 pages
Deliverables: Word Document
Deliverables: Word Document
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Math Solutions
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Math Solutions
