Price Leadership. Leading People Magazine is a dominant price leading firm in the popular celebrity news magazine market. Moonlighting and National Inquest are news-magazinecompetitorsthat address the same audience. Total and marginal cost relations for each magazine are:

Leading People

TC_L= 12,500 - 1Q_L+ 0.000005Q_L²

MC_L=TC_L/Q_L= -1 + 0.00001Q_L

Moonlighting

TC_M= 10,000 + 0.5Q_M+ 0.00005Q_M²

MC_M=TC_M/Q_M= 0.5 + 0.0001Q_M

National Inquest

TC_N= 50,000 + 1.25Q_N+ 0.000025Q_N²

MC_N=TC_N/Q_N= 1.25 + 0.00005Q_N

and the industry demand curve is:

Q_D= 170,000 - 20,000P

Assume throughout this problem that Moonlighting and National Inquest are perfect substitutes for Leading People magazine.

Calculate optimal supply for National Inquest.

Price Leadership. Leading People Magazine is a dominant price leading firm in the popular celebrity news magazine market. Moonlighting and National Inquest are news-magazinecompetitorsthat address the same audience. Total and marginal cost relations for each magazine are:

Leading People

TC_L= 12,500 - 1Q_L+ 0.000005Q_L²

MC_L=TC_L/Q_L= -1 + 0.00001Q_L

Moonlighting

TC_M= 10,000 + 0.5Q_M+ 0.00005Q_M²

MC_M=TC_M/Q_M= 0.5 + 0.0001Q_M

National Inquest

TC_N= 50,000 + 1.25Q_N+ 0.000025Q_N²

MC_N=TC_N/Q_N= 1.25 + 0.00005Q_N

and the industry demand curve is:

Q_D= 170,000 - 20,000P

Assume throughout this problem that Moonlighting and National Inquest are perfect substitutes for Leading People magazine.

Calculate optimal supply for Moonlighting.

Price Leadership. Leading People Magazine is a dominant price leading firm in the popular celebrity news magazine market. Moonlighting and National Inquest are news-magazinecompetitorsthat address the same audience. Total and marginal cost relations for each magazine are:

Leading People

TC_L= 12,500 - 1Q_L+ 0.000005Q_L²

MC_L=TC_L/Q_L= -1 + 0.00001Q_L

Moonlighting

TC_M= 10,000 + 0.5Q_M+ 0.00005Q_M²

MC_M=TC_M/Q_M= 0.5 + 0.0001Q_M

National Inquest

TC_N= 50,000 + 1.25Q_N+ 0.000025Q_N²

MC_N=TC_N/Q_N= 1.25 + 0.00005Q_N

and the industry demand curve is:

Q_D= 170,000 - 20,000P

Assume throughout this problem that Moonlighting and National Inquest are perfect substitutes for Leading People magazine.

Calculate Leading People's profit-maximizingprice.

Price Leadership. Leading People Magazine is a dominant price leading firm in thepopular celebrity news magazine market. Moonlighting and National Inquest arenews-magazinecompetitorsthat address the same audience. Total and marginal cost relations foreach magazine are:

Leading People

TC_L= 12,500 - 1Q_L+ 0.000005Q_L²

MC_L=TC_L/Q_L= -$1 + $0.00001Q_L

Moonlighting

TC_M= 10,000 + 0.5Q_M+ 0.00005Q_M²

MC_M=TC_M/Q_M= 0.5 + 0.0001Q_M

National Inquest

TC_N= 50,000 + 1.25Q_N+ 0.000025Q_N²

MC_N=TC_N/Q_N= 1.25 + 0.00005Q_N

and the industry demand curve is:

Q_D= 170,000 - 20,000P

Assume throughout this problem that Moonlighting and National Inquest are perfect substitutes for Leading People magazine.

Calculate Leading People's profit-maximizingoutput.