Suppose the market for watches has one dominant firm and 60 fringe firms. The market demand is Q = 1500 2P. The dominant firm has a constant marginal cost of 120 and no other cost. The fringe firms each have a marginal cost of MCi = 120 + 20qi and no other cost. Hint: this question is an example of price leadership by a dominant firm.

a)What is the total supply curve for the 60 fringe firms?

b) What is the dominant firms demand curve.

c) What is the profit maximizing quantity produced and price changed by the dominant firm?

d) What is the profit of the dominant firm?

e) What is the quantity produced and price charged by the 60 fringe firms all together? How about by each of the 60 firms?