This is a continuation of the previous question with the same information as before. 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 = ____.

This is a continuation of the previous question with the same information as before. Price is set in a market by a dominant firm price leader (L = Leader). Total Market Demand is P = 10,000-20QT. The dominant firm price leader’s (L = Leader or Dominant Firm) total cost is TCL = 60QL + 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 = ____.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopoly

Section: Chapter Questions

Problem 20SQ

See similar textbooks

Similar questions

A new market appears that works according to the rules of the Stackelberg model. The costs of firms on this market as a function of individual supply q is C(q) = f + Cq^2, where both F > 0, C > 0. The demand is P(Q) = A - BQ as afunction of total supply Q, with A > 0, B > 0. What is the quantity of followers on the market assuming free entry (as a function of A B C and F) Assume entry costs Z, what is the new equilibrium quantity of firms?
The Tourist-Trap model describes a situation where the existence of a search cost, c, and price ignorance of buyers lead to an equilibrium in which all sellers practice the monopoly price. This result holds... (a) ... only when the number of sellers is small (b) ... only when search costs are high (c) ... for any search cost c > 0 (d) ... even when buyers can buy repeatedly at the same location thus gradually learning the prices practiced by other sellers
Based on arguments made by Friedman and Fama, which of the following requirements must be fulfilled for noise traders to affect markets in equilibrium? Select all that apply. Noise traders must be able to survive economically for a significant period of time All traders must be risk averse Technical trading must be profitable at least some of the time Noise trader behavior must be systematic
(Dominant Firm with Fringe Competition) The structure of competition in the market for product A follows the dominant firm model with competitive fringes, where there is one company that is a dominant player and there are many fringes companies that compete competitively. The total demand for product A in this market is expressed by P = 1200 - Q, while the supply function of the competitive fringe is expressed by Sf: qf = P - 240. If the dominant firm is known to have marginal costs as follows: MCd = 240 + 0.25qd b. What is the equilibrium price and the equilibrium quantity for the dominant firm? Show your answer mathematically and graphically. c. In that equilibrium, what is the supply of competitive fringes? How many total products are there on the market? What is the market share of the dominant company and the fringe company? Show your answer mathematically and graphically Thank you Bartleby!
(Dominant Firm with Fringe Competition) The structure of competition in the market for product A follows the dominant firm model with competitive fringes, where there is one company that is a dominant player and there are many fringes companies that compete competitively. The total demand for product A in this market is expressed by P = 1200 - Q, while the supply function of the competitive fringe is expressed by Sf: qf = P - 240. If the dominant firm is known to have marginal costs as follows: MCd = 240 + 0.25qd a. What is the minimum price level required by the competitive fringe to offer output? At what price level will the fringe company supply the entire market? Thank you bartleby!
You are the manager of a firm that competes against four other firms by bidding for government contracts. While you believe your product is better than the competition’s, the government purchasing agent views the products as identical and purchases from the firm offering the best price. Total government demand is Q = 1,000 − 5P, and all five firms produce at a constant marginal cost of $60. For security reasons, the government has imposed restrictions that permit a maximum of five firms to compete in this market; thus, entry by new firms is prohibited. A member of Congress is concerned because no restrictions have been placed on the price that the government pays for this product. In response, she has proposed legislation that would award each existing firm 20 percent of a contract for 625 units at a contracted price of $75 per unit. Would you support or oppose this legislation? Explain
(Dominant Firm with Fringe Competition) The structure of competition in the market for product A follows the dominant firm model with competitive fringes, where there is one company that is a dominant player and there are many fringes companies that compete competitively. The total demand for product A in this market is expressed by P = 1200 - Q, while the supply function of the competitive fringe is expressed by Sf: qf = P - 240. If the dominant firm is known to have marginal costs as follows: MCd = 240 + 0.25qd d. If the dominant company wants to limit competition from fringes, what can the dominant company do? What is the name of this strategy?
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.
A large firm has two divisions: an upstream division that is a monopoly supplier of an input whose only market is the downstream division that produces the final output. To produce one unit of the final output, the downstream division requires one unit of the input. If the inverse demand for the final output is P = 1,000 − 80Q, would the company’s value be maximized by paying upstream and downstream divisional managers a percentage of their divisional profits?
Prove the following result in the derivation of the asymptotic optimality of the bid-price control policy. Let X be a random variable with finite first and second order moments, i.e., E[X] = µ < +∞, E[(X − E[X])^2] = σ^2 < +∞. Let x+ = max{x, 0}. Prove the following: ∀m ∈ R,E[(X − m)+] ≤ (√ (σ2 + (m − µ)^2) − (m − µ))/2.Hint: You can without loss of generality let m = 0
QUESTION 47 Cartels are unstable due to all of the following factors except which one? incentive for each firm to serve as the whistle-blower entry of new firms into the market trade groups incentive to act in self-interest QUESTION 48 Under the merger guidelines written by the DOJ and FTC a merger may not be challenge if: There is significant foreign competition The firms involved have monetary problems There is an emergence of new technology All of the statements associated with this question are correct QUESTION 49 The existence of any consumer surplus in the market suggests that all of the following practices are possible in the market except which one? first-degree price discrimination a single price is charged to all consumers second-degree price discrimination third-degree price discrimination QUESTION 50 In peak-load pricing, the short-run marginal cost is equal to the marginal cost of providing capacity. True False.
For the same demand and cost conditions, which of the following is true? Group of answer choices Consumer surplus and producer surplus are both lesser in a monopoly market compared to perfect competition. Consumer surplus is lesser but producer surplus is greater in a monopoly market compared to perfect competition. Consumer surplus is greater and producer surplus is lesser in a monopoly market compared to perfect competition. Consumer surplus and producer surplus are both greater in perfect competition than in a monopoly.