Question
Glyde Air Fresheners is the price leader in the solid room aromatizer industry, which has a total market demand given by Q = 80 -
Glyde Air Fresheners is the price leader 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+2Qi2
Glyde's total costs are given by TCG= 100 + 6QG.
a. Complete the followers' supply equation QS=.
b. Complete Glyde's residual demand equation QG=.
c. Compute Glyde's profit maximizing output level QG*=and Price PG*=$
d. Compute the output level produced by four firms QS*=and the total market output level Q*=
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