Homework 3 B. Dominant firm model questions Assume a market of a crude oil market. The world demand and the supply equations for OPEC (Price leader) and shale (follower) oil producers are as shown below: Qworiao- 150 - 3P, MCOPEC =5+0.4Q5OPEC MCSHALE = 30 + Q5SHALE 1. Find the market price 2. Find the profit of OPEC and profit of Shale oil producers

Homework 3 B. Dominant firm model questions Assume a market of a crude oil market. The world demand and the supply equations for OPEC (Price leader) and shale (follower) oil producers are as shown below: Qworiao- 150 - 3P, MCOPEC =5+0.4Q5OPEC MCSHALE = 30 + Q5SHALE 1. Find the market price 2. Find the profit of OPEC and profit of Shale oil producers

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter22: Perfect Competition

Section: Chapter Questions

Problem 4QP

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