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The market demand curve for lonely-flower is P = 4 2 0 3 There two types of firm in the market and the production costs
The market demand curve for lonely-flower is P=4203
There two types of firm in the market and the production costs facing the two type
of firm are shown as follow:
Type 1 (Fringe):TC1=50q1+q12
Type 2 (Dominant):TC2=30q1
There are 10 Type-1 firms and 1 Type-2 firm in the market.
Calculate the output level and profit for each type of the firm respectively under the dominant-fringe model's equilibrium.
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