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Consider an industry in which the total demand isq(p) = 202p. The market is served by a dominant firm and four firms that behave in
Consider an industry in which the total demand isq(p) = 202p. The market is served by a dominant firm and four firms that behave in a competitive manner. The dominant firm faces a total cost function equal to C(D) = q^2 The competitive firms have identical cost functions given byCi=C(q) =(q^2)/2.
Find the quantity produced by the dominant firm and the quantity produced by the competitive fringe.
Find the consumer surplus at the market price.
Find the aggregate producer surplus at the market price.
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