Dominant firms demand elasticity in the equilibrium

Assignment Help Business Economics

Reference no: EM131090629

An industry consists of a dominant firm with costs C(Qd)=2Qd and 4 identical fringe firms, each with costs c(q)=1+q^2. Market demand is Q=24-p. Derive the residual demand for the dominant firm. Sketch the demand, supply of the fringe, and the rsidual demand. Suppose the dominant firm allows fringe to produce. What are the equilibrium price and output of each of the firms? What is the dominant firm's demand elasticity in the equilibrium?

Reference no: EM131090629

Questions Cloud

Producing the optimal number of cell phones : Although the last 3,000 cell phones we produced and sold increased our revenue by $6,000 and our costs by $6,700, we are still making an overall profit of $5,000 per week so I think we're on the right track. We are producing the optimal number of ..

How much will each firm produce in the long-run equilibrium : Suppose that sprockets are a perfectly competitive, constant cost industry with a large number of identical firms who have a long run total cost curve of TC(Q)=Q^3−4Q^2+10Q. The market demand curve is Q^D=250−2P. What is the long-run equilibrium pric..

Why do you say law enforcement should not be involved : Should local law enforcement be playing a role in the fight against terrorism? If so, what role should they play? If not, why do you say law enforcement should not be involved?

What is the maximum bandwidth of this network, in bytes/s. : what is the maximum bandwidth of this network, in bytes/s.

Dominant firms demand elasticity in the equilibrium : An industry consists of a dominant firm with costs C(Qd)=2Qd and 4 identical fringe firms, each with costs c(q)=1+q^2. Market demand is Q=24-p. Derive the residual demand for the dominant firm. Sketch the demand, supply of the fringe, and the rsidual..

Linear demand curve and constant marginal cost curve : Draw an example of a monopoly with a linear demand curve and a constant marginal cost curve. Show the profit-maximizing price and output, p* and Q*, and identify the areas of consumer surplus, producer surplus, and deadweight loss. Also show the quan..

Corporate culture an important element in an organization : 1. What are the five traditional organizational structures? What are the pros and cons of each? Explain what organizations of the future will look like. Why do you think they will develop as you predict?

Show the floating-point version of the digital filter : Show the floating-point version of the digital filter.

Management written assessment : You seriously doubt that a material weakness would have been found if time had permitted a more thorough audit. Management's written assessment concludes that the entity's ICFR was effective as of the report date.

User Account

All Pages