The following market has one dominant firm and four fringe firms. All firms are producing homogenous products. The market is at long-run equilibrium and there are zero barriers to entry. The market demand is: P = 300 - 10Q. All fringe firms have the same cost structure which is: C = 130q_f. The dominant firms cost structure is: C = 100q_d + 1.5q_d^2.

The questions are as follows:

a. What is equilibrium price?

b. Whilst accommodating the fringe firms, what is the quantity produce by the dominant firm?

c. What is the quantity each fringe firm produces?

d. Why does the dominant firm accommodate the fringe firms? Show your reasoning.