Price is set in a market by a dominant firm price leader (L = Leader). Total Market Demand is P = 10,000-5*QT. QT= 2,000 - .20*P. The dominant firm’s total cost is TCL= 50*QL + 1.5*QL2. The dominant firm’s Quantity Demanded is QL= QT – QF. The competitive fringe supply is SF= PL = 50 + 2QF; QF = -25 + .5*P. The fringe firms’ output is?
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Total Market
P = 10,000-5*QT.
QT= 2,000 - .20*P.
The dominant firm’s total cost is
TCL= 50*QL + 1.5*QL2.
The dominant firm’s Quantity Demanded is
QL= QT – QF.
The competitive fringe supply is
SF= PL = 50 + 2QF;
QF = -25 + .5*P.
The fringe firms’ output is?
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- A market consists of a dominant firm and a number of fringe firms. The followings are the information about these firms. Total market demand: QALL=300 – (2.5) P The competitive fringe supply function (total): QF=2P-12 The dominant firms marginal cost function: MC = 12 + (1⁄2) QD. a) What is the equilibrium price set by the dominant firm? b) How much will the competitive fringe supply to the market at the price found in question (a)? Show the answers graphically.Price is set in a market by a dominant firm price leader (L = Leader). Total Market Demand is P = 10,000-5*QT.QT= 2,000 - .20*P.The dominant firm’s total cost is TCL= 50*QL + 1.5*QL2. The dominant firm’s Quantity Demanded is QL= QT – QF. The competitive fringe supply isSF= PL = 50 + 2QF;QF = -25 + .5*P.Profit maximizing price set by the dominant firm will beThe average avoidable cost for a fringe firm is AAC(q) = 20/q +5q. The marginal cost function for a fringe firm is MC = 10q. There are 10 fringe firms. The marginal cost of the dominant firm is 2 and the demand function is Q = 100 − P. What is the supply function of the fringe? What is p0, the minimum price at which the fringe will supply? What is the residual demand function for the dominant firm? What is the profit-maximizing price of the dominant firm? Compare monopoly profits to the profits of the dominant firm. Which market structure is socially preferable, dominant firm or monopoly? Why?
- A market consists of a dominant firm and a number of fringe firms. The followings are the information about these firms. Total market demand: QALL=300 – (2.5) P The competitive fringe supply function (total): QF=2P-12 The dominant firms marginal cost function: MC = 12 + (1⁄2) QD. a) What is the equilibrium price set by the dominant firm? b) Calculate the total market demand at the price found in question (a). c) How much will the competitive fringe supply to the market at the price found in question (a)? d) How much will the dominant firm supply to the market at the price found in question (a)? Show the answers graphically.Price is set in a market by a dominant firm price leader (L = Leader). Total Market Demand is P = 10,000-20*QT. The dominant firm price leader’s (L = Leader or Dominant Firm) total cost is TCL = 60*QL + 1.5*QL2. The competitive fringe supply (F = Fringe) is SF = PL = 100 + 2QF. Determine the quantity that will be produced and sold by the Dominant Firm. The Dominant Firm quantity =A market consists of a dominant firm and a number of fringe firms. The followings are the information about these firms. Total market demand: QALL=300 – (2.5)P The competitive fringe supply function (total): QF=2P-12 The dominant firms marginal cost function: MC = 12 + (1⁄2)QD. What is the equilibrium price set by the dominant firm? Calculate the total market demand at the price found in question 2(a). How much will the competitive fringe supply to the market at the price found in question 2(a)? How much will the dominant firm supply to the market at the price found in question 2(a)? 5. Show the above answers graphically.
- A perfectly competitive market is characterized by the following inverse demand function and inverse supply function where Q is output and P is the price in dollars. 1. Suppose that a price ceiling of $30 is set by the government. Calculate the consumer surplus, the producer surplus, and the deadweight loss as a result of the government price ceilingA market consists of a dominant firm and a number of fringe firms. The followings are the information about these firms. Total market demand: QALL=300 – (2.5) P The competitive fringe supply function (total): QF=2P-12 The dominant firms marginal cost function: MC = 12 + (1⁄2)QD. a) What is the equilibrium price set by the dominant firm? Calculate the total market demand at the price found. b) How much will the competitive fringe supply to the market at the price found in question 2(a)? c) How much will the dominant firm supply to the market at the price found in question 2(a)? d) Show the above answers graphically.A perfectly competitive market is characterized by the following inverse demand function and inverse supply function where Q is output and P is the price in dollars. Demand: P = 100 – QD Supply: P = 10 + QS Suppose that a price ceiling of $30 is set by the government. Calculate the consumer surplus, the producer surplus, and the deadweight loss as a result of the government price ceiling
- A competitive firm can sell any amount if the firm set a price equal to the market price. True or false?A market consists of a dominant firm and a number of fringe firms. The followings are the information about these firms. Total market demand: QALL=300 – (2.5) P The competitive fringe supply function (total): QF=2P-12 The dominant firms marginal cost function: MC = 12 + (1⁄2) QD. a) What is the equilibrium price set by the dominant firm? b) Calculate the total market demand at the price found in question (a). Show the answers graphically.A market consists of a dominant firm and a number of fringe firms. The followings are the information about these firms. Total market demand: QALL=300 – (2.5) P The competitive fringe supply function (total): QF=2P-12 The dominant firms marginal cost function: MC = 12 + (1⁄2) QD. a) What is the equilibrium price set by the dominant firm? ANSWER: P= 55.82 b) Calculate the total market demand at the price found in question 2(a). ANSWER: QALL= 160.45 c) How much will the dominant firm supply to the market at the price found in question 2(a)?