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Glyde Air Fresheners is the dominant firm in the solid room aromatizer industry, which has a total market demand given by Q = 80 2P.
Glyde Air Fresheners is the dominant firm in the solid room aromatizer industry, which has a total market demand given by Q = 80 2P. Glyde has 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 by TCi = 10Qi + 2Q2i. If Glyde's total costs are given by TCG = 100 + 6QG,
(a) what are the total profits of the fringe firms?
(b) what is Glydes maximum profit?
(c) what price should Glyde establish for air fresheners?
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