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Q2 [DOMINANT FIRM MODEL.] Apple's iPod has been the portal MP3-player of choice among many gadget enthusi asts. Suppose that Apple has a constant marginal

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Q2 [DOMINANT FIRM MODEL.] Apple's iPod has been the portal MP3-player of choice among many gadget enthusi asts. Suppose that Apple has a constant marginal cost of 4 and that market demand is given by Q = 200 - 2P. Suppose there is a competitive fringe of 12 price-taking firms, each of which has a total cost function TC(q) = 3q2 + 20q. (a) Find the supply function of the fringe. (b) If Apple operates as the dominant firm facing competition from the fringe in this market, What is the market price? What is its optimal output? (c) How many units will fringe providers sell

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