Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The demand function for an oligopolistic market is given by the equation, Q = 200 - 4P, where Q is the market quantity demanded and

The demand function for an oligopolistic market is given by the equation, Q = 200 - 4P, where Q is the market quantity demanded and P is price. The industry has one dominant firm and many small firms. The dominant firm's marginal cost function is: MC = 14 + 0.1QD. where QDis the quantity produced by the dominant firm.The small firms have a total supply function as QS = 30 + P. Derive the demand equation for the dominant oligopoly firm and answer the questions below.

  1. Determine the dominant oligopoly firm's profit-maximizing output (QD) and price (P). Answer: QD = and P = $
  2. Determine the value of the total output of the small firms (QS). Answer: QS =

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Commercial Fishing On The Outer Banks

Authors: R Wayne Gray, Nancy Beach Gray

1st Edition

1439667055, 9781439667057

More Books

Students also viewed these Economics questions

Question

In what sense can the historian be objective?

Answered: 1 week ago

Question

conceptual framework of marketing plan of the grocery store.

Answered: 1 week ago