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PART 2 OPTION 1: (Dominant firm) An industry consists of a dominant firm with costs C(qd) = 50qa and 2 identical fringe firms, each with costs C(qr) = 150qr + qr2. Market demand is q(P) = 200 - P. i) Derive the fringe firm supply, q? (p), and the total fringe firm supply, Q;(p). Be sure to indicate at what price range output would be zero. ii) Derive dominant firm's residual demand curve, qa (P), to state over what range of output each segment pertains. iii) Derive the firm's marginal revenue curve being sure to state to state over what range of output each segment pertains. iv) What are the values of A-E on the dominant firm's MR diagram below? P A MR D E Q v) Determine the equilibrium profit maximizing price and quantity for the dominant firm, quantity supplied by each fringe firms, and total fringe firm output