= = = = = Price Leadership. Leading People Magazine is a dominant price leading firm in the popular celebrity news magazine market. Moonlighting and National Inquest are news-magazine competitors that address the same audience. Total and marginal cost relations for each magazine are: Leading People 2 TCL = 12,500 - 1QL + 0.000005QL MCL = TCLI@QL = -1 + 0.00001QL Moonlighting TCM = 10,000 + 0.5QM + 0.00005QM2 MCM = TCM/QM = 0.5 +0.0001QM National Inquest TCN = 50,000 + 1.25QN + 0.000025QN2 MCN = TCN/OQN = 1.25 + 0.00005QN Industry Demand Curve Qp = 170,000 - 20,000P Assume throughout this problem that Moonlighting and National Inquest are perfect substitutes for Leading People magazine. What are the demand curves faced by Leading People? QL = [A] - [B]PL PL= [C] - [D]QL = = = = Price Leadership. Leading People Magazine is a dominant price leading firm in the popular celebrity news magazine market. Moonlighting and National Inquest are news-magazine competitors that address the same audience. Total and marginal cost relations for each magazine are: Leading People TCL = 12,500 - 1QL + 0.000005Q_2 MCL = @TC_1@QL = -1 + 0.00001QL Moonlighting TCM = 10,000 + 0.5QM + 0.00005QM2 MCM = TCM/AQM = 0.5 +0.0001QM National Inquest TCN = 50,000 + 1.250N + 0.000025QN2 MCN = OTCN/aQN = 1.25 +0.00005QN Industry Demand Curve Qp = 170,000 - 20,000P Assume throughout this problem that Moonlighting and National Inquest are perfect substitutes for Leading People magazine. Determine the supply curves Q = f(P) for the Moonlighting and National Inquest magazines, assuming the firms operate as price takers. Calculate Leading People's profit-maximizing output. = + = = = = = Price Leadership. Leading People Magazine is a dominant price leading firm in the popular celebrity news magazine market. Moonlighting and National Inquest are news-magazine competitors that address the same audience. Total and marginal cost relations for each magazine are: Leading People 2 TCL = 12,500 - 1QL + 0.000005QL MCL = TCLI@QL = -1 + 0.00001QL Moonlighting TCM = 10,000 + 0.5QM + 0.00005QM2 MCM = TCM/QM = 0.5 +0.0001QM National Inquest TCN = 50,000 + 1.25QN + 0.000025QN2 MCN = TCN/OQN = 1.25 + 0.00005QN Industry Demand Curve Qp = 170,000 - 20,000P Assume throughout this problem that Moonlighting and National Inquest are perfect substitutes for Leading People magazine. What are the demand curves faced by Leading People? QL = [A] - [B]PL PL= [C] - [D]QL = = = = Price Leadership. Leading People Magazine is a dominant price leading firm in the popular celebrity news magazine market. Moonlighting and National Inquest are news-magazine competitors that address the same audience. Total and marginal cost relations for each magazine are: Leading People TCL = 12,500 - 1QL + 0.000005Q_2 MCL = @TC_1@QL = -1 + 0.00001QL Moonlighting TCM = 10,000 + 0.5QM + 0.00005QM2 MCM = TCM/AQM = 0.5 +0.0001QM National Inquest TCN = 50,000 + 1.250N + 0.000025QN2 MCN = OTCN/aQN = 1.25 +0.00005QN Industry Demand Curve Qp = 170,000 - 20,000P Assume throughout this problem that Moonlighting and National Inquest are perfect substitutes for Leading People magazine. Determine the supply curves Q = f(P) for the Moonlighting and National Inquest magazines, assuming the firms operate as price takers. Calculate Leading People's profit-maximizing output. = +
