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Assume that an industry is composed of a leading manufacturer and 8 small factories of similar size. The total cost of the leading firm is:
Assume that an industry is composed of a leading manufacturer and 8 small factories of similar size. The total cost of the leading firm is: TCL(Qd)=320Qd+QdThe total cost of each of the other 8 small factories is: TCr(q)=70q+2q. The market demand is: Q=100-P (a) (10 points) Please calculate the output and profit of the leading firm in equilibrium? (b) (10 points) Please calculate the output and profit of each small factory in equilibrium? (c) (5 points) Please calculate the market price at equilibrium
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