Study Guide for Microeconomics
9th Edition
ISBN: 9780134741123
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Question
Chapter 12, Problem 13E
(a)
To determine
The total supply curve of the five firms.
(b)
To determine
The demand curve of the dominant firm.
(c)
To determine
The profit maximizing quantity and price charged by the dominant firm.
(d)
To determine
Change in the market condition when there are 10 fringe firms.
(e)
To determine
Change in the market condition when there are 5 fringe firms with marginal cost lower.
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Students have asked these similar questions
The 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?
The cost function of the fringe firms is TC(q) = 4q, their total capacity is K = 2 units. The dominant firm has TC(q) = q. The market demand is Q(P) = 20 – 2P.
What is the fringe supply?
What is the profit maximizing price for the dominant firm?
with expl plz
In a perfectly competitive market, one of the following answers is correct with respect to the demand curve for a perfectly competitive firm. Which one?
Group of answer choices
The perceived demand curve is downward sloping.
The perceived demand curve for a perfectly competitive firm and a monopolist look the same.
When price increases, quantity demanded from the firm will also decrease.
The demand curve is flat.
Chapter 12 Solutions
Study Guide for Microeconomics
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