Question
(1.5 Points) Price is set in a market by a dominant firm price leader (L = Leader). Total Market Demand is P = 10,000-5*Q T.
(1.5 Points) 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 dominant firm's profit is _______.
| A. | 689,913. | |
| B. | 702,356. | |
| C. | 728,426. | |
| D. | 836,523. | |
| E. | 905,127. |
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Managerial Economics A Problem Solving Approach
Authors: Luke M. Froeb, Brian T. McCann
1st Edition
0324359810, 9780324359817
