Information of oligopoly pricing

Reference no: EM1368141

Mr. Smith is president of a firm that is the industry price leader; that is, it sets the price and other firms sell all they want at that price. The other firms act as perfect competitors. The demand curve for this industry's product is P=300-Q, where P is the price of the product and Q is the total quantity demanded. The total amount supplied by the other firms is equal to Qr, where Qr=49P. (P dollars per barrel, Q, Qr, & Qb is millions barrels per week.)

A) If Smith's firm's marginal cost curve is 2.96Qb, where Qb is the output of his firm, at what output level should he operate to maximize profit?

B) What price should he charge?

C) How much does the industry as a whole produce at this price?

D) Is Smith's firm the dominant firm in the industry?

Reference no: EM1368141

Questions Cloud

Explain database models-hierarchical and relational : Explain each of three database models, hierarchical, relational, and object-oriented, and provide specific referenced example of each of these model types implemented in a functioning database

How the protons are to hit the target : protons are projected with an initial velocity v0 = 10410m/s into a region where a uniform electric field E = 710 N/C is present. The protons are to hit the target that lies a horizontal distance of 1.27mm from the point where protons are launched..

Naturopathic and homeopathic doctors : Prepare a proposal for an insurance company to convince them that they must cover services given by Naturopathic and Homeopathic doctors.

Differences between setting goals for other people : Show the similarities and differences between setting goals for other people and setting goals for yourself. When does goal setting fail, and when does it succeed?

Information of oligopoly pricing : Mr. Smith is president of a firm that is the industry price leader; that is, it sets the price and other firms sell all they want at that price. The other firms act as perfect competitors.

How many such containers are thrown away : A force vector has a magnitude of 584 newtons and points at an angle 45o of below the positive x axis. What are (a) x scalar component and (b) y scalar component of the vector.

Variable cost plus fixed costs equal total costs : Variable cost plus fixed costs equal total costs and why would a firm sell its products as long as the revenue covers the variable costs?

Stolper samuelson theorem : Determine what does the Stolper-Samuelson theorem suggest in case of a country being opened to international trade?

Write function template which accepts array : Write a function template arraySum () which accepts array and number of values stored in it and returns the sum of those values.

User Account

All Pages