7

The table below shows the variations in price, total market demand, and the quantity supplied by the competitive fringe in a market where a large firm, called Mine EDX, dominates those in the competitive fringe of the market.

Price ($, per unit)	Total Market Demand (units, per plant, per day)	Quantity Supplied by the Competitive Fringe (units, per plants, per day)
98.94	67.5	23.63
92.75	90	27
86.56	112.5	36.56
80.38	135	47.25
74.19	157.5	55.13

Question 1

First, compute the demand facing the dominant firm: Mine EDX. Then, compute the market share for Mine EDX at each given price. On average, Mine EDX serves _____ percent of the total market demand. (Note: Enter your answer below using two decimal points).

Question 2

Consider the information in Question No. 1. The marginal cost being at $40, Mine EDX produces ______ units (per plant, per day) to maximize its profit. (Note: Enter your answer below using two decimal points).

Question 3

Consider the information in Question No. 1. The marginal cost being at $40, Mine EDX charges its customer ______ dollars (per unit) to maximize its profit. (Note: Enter your answer below using two decimal points).

Question 4

Consider your answer to Question No. 3. Also, consider the Mark-Up Index: MI=(P-MC)/MC. Marginal cost being at $40, what is the Mark-up Index for Mine EDX?