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(Requires Calculus) In the model of a dominant firm, assuming that the fringe supply curve is given Q= -1 + 0.2P, where P is market price and Q is output.Demand is given by Q=11-p.
a) What will price and output be if there is no dominant firm?
b) Assuming that there is a dominant firm, whose marginal cost is constant at $6. Derive the residual demand curve that it faces. Calculate its profit-maximizing output and price and show just the Output number and Price per unit
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