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Amazon is the dominant firm in theonlineshoppingserviceindustry, which has a total market demand given by Q = 100 - 2 P . Amazonhas competition from
Amazon is the dominant firm in theonlineshoppingserviceindustry, which has a total market demand given byQ= 100 - 2P. Amazonhas competition from a fringe of four small firms that produce where their individual marginal costs equal the market price. The fringe firms each have total costs given byTCi= 10Qi+Q2i. If Amazon's total costs are given byTCA= 10 + 10QA, what price should Amazonestablish for onlineshopping service?
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