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Q. A industry in an oligopolistic industry has identified two sets of demand curves. If industry is only one that changes cost (i.e. or industries do not follows), its demand curves takes form Q=82 - 8P. If, though it is expected that competitors will follow cost actions of industry, n demand curve is of form Q = 44 - 3P.
a. Develop a demand schedules for each alternatives and draw m on graph.
b. Estimate marginal income curves for each
c. If Current cost and quantity position of industry is located at intersection of demand curve and competitors follow any cost decrease however do not follow a cost increase, show demand curve relevant to industry.
d. Draw appropriate marginal income curve.
e. Show range over which a marginal cost curve could rise or fall without affecting cost industry charges
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