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A market consists of a dominant firm and a number of fringe firms. The followings are the information about these firms.
Total market
The competitive fringe supply function (total): QF=2P-12
The dominant firms marginal cost function: MC = 12 + (1⁄2) QD.
a) What is the
b) How much will the dominant firm supply to the market at the price found in question (a)?
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- Price is set in a market by a dominant firm price leader (L = Leader). Total Market Demand is P = 10,000-20*QT. The dominant firm price leader’s (L = Leader or Dominant Firm) total cost is TCL = 60*QL + 1.5*QL2. The competitive fringe supply (F = Fringe) is SF = PL = 100 + 2QF. Determine the price set by the Dominant Firm. The Dominant Firm priceSuppose a single firm produces all of the output in a contestable market. The market inverse demand function is P = 250 -4Q, and the firm’s cost function is C(Q) = 8Q. Determine the firm’s equilibrium price and corresponding profits.Price: $ Profits: $consider a market with a large number of firms, an upward sloping supply curve S0, and a downward sloping demand curve D0. Assume that the market is perfectly competitive; hence, the supply curve S0 is the sum of the marginal cost curves of all the firms. Indicate the original competitive equilibrium price P0, equilibrium quantity Q0, the resulting Consumer Surplus CS0, the resulting Producer Surplus PS0, and the “socially optimal” output (the output the Benevolent Dictator would choose) QSO on your graph. Graphically indicate the size of Dead-Weight Loss DWL0 if there is such a loss. In the narrative, please explain how you determined the socially optimal output level and the presence (or absence) of dead-weight loss in this situation.
- Determine the profit-maximizing LOADING... prices when a firm faces two markets where the inverse demand curves are Market A: pA=100−2QA, where demand is less elastic, and Market B: pB=60−1QB, where demand is more elastic, and Marginal Cost=m=20 for both markets. Part 2 For Market A: pA=$enter your response here. (Round your response to two decimal places.) Part 3 For Market B: pB=$enter your response here. (Round your response to two decimal places.)Determine the profit-maximizing LOADING... prices when a firm faces two markets where the inverse demand curves are Market A: pA=120−2QA, where demand is less elastic, and Market B: pB=80−0.5QB, where demand is more elastic, and Marginal Cost=m=20 for both markets. Part 2 For Market A: pA=$enter your response here. (Round your response to two decimal places.) Part 3 For Market B: pB=$enter your response here. 1. The cost function for any potential firm in a manufacturing industry is C(y) = 2+ 8y + 2y? (if a firm exits the industry, then its cost is zero). The inverse market demand function is given by P(y) = 100 – 2y. (b) If the industry allows free entry and all the firms are price takers, what is the number of firms in equilibrium?
- A market has many small firms and one dominant firm. The market demand is Q = 100-5P. The dominant firm has a constant marginal cost of $6. All the smaller fringe firms combined have a supply curve given by Qs = 4P-8. The dominant firm sets the market price, and the fringe firms act as price takers. The dominant firm allows the fringe firms to sell as (Enter your responses many units as they want at the price set by the dominant firm. The rest of the market is then supplied by the dominant firm. The profit-maximizing quantity produced by the dominant firm is units and the price it charges is $ as integers.) The fringe firms will produce and sell a total of units at the market price r your response as an integer.)Price is set in a market by a dominant firm price leader (L = Leader). Total Market Demand is P = 10,000-20*QT. The dominant firm price leader’s (L = Leader or Dominant Firm) total cost is TCL = 60*QL + 1.5*QL2. The competitive fringe supply (F = Fringe) is SF = PL = 100 + 2QF. Determine the quantity that will be produced and sold by the Dominant Firm. The Dominant Firm quantity =4. Consider a market where every firm and every potential entrant has the iden- tical cost function C(q) = 3q³-6q² +6q. (a) Find the firm's inverse supply function. (b) Suppose the market demand function is given by QP (P) = 20-2P. Find the long-run equilibrium price, quantity, and the number of firms. (c) Suppose the demand function suddenly becomes perfectly inelastic at quan- tity Q = 7. Find the long-run equilibrium price, quantity and the number of firms. (d) Suppose the demand becomes perfectly inelastic at quantity Q = 7, and the government decides to collect a per unit tax t = 4 from the producers for every unit of the good they sell. Find the long-run equilibrium price, quantity and the number of firms.
- Let be a monopoly whose total cost function is such that C(Q) = 2Q. The (inverse) demand in this market is given by P(Q) = 16 - Q. Which one is right ? a. If the monopoly maximizes its profit, Dead load of the monopoly is 32.5 b. If the monopoly maximizes its profit . Dead load of the monopoly is 24.5 c. If the monopoly maximizes its profit. Dead load of the monopoly is 35 d. None of these statements is correct e. If monopoly maximizes its profit The dead load of monopoly is 28.5A dominant or price setting firm and several smaller price takers serve a market where total market demand is Qd = 700 – 3P and the combined supply from all the smaller firms is Qs = - 20 + 2P. State the dominant firm’s marginal revenue function (MRf), and use it to determine its profit maximizing quantity and the price (P) it will set for the market if MC = $56.Feedback Imagine that the flat-screen TV market is made up of one large firm that leads the industry and sets its own price first, and another firm that follows the leader when deciding its own profit-maximizing strategy. The leader has a cost function of c₁ (91) = 5q1, and the follower has a cost function of CF (ar) = 4, where Q =q₁ + qr. Total market demand for flat-screen TVs is given by the function Q = 250.00-2p. Calculate the following values: Leading firm's production: q = Follower firm's production: qp = Equilibrium price: p= $49.37 9 OF 16 QUESTIONS COMPLETED 118.33 32.92 (Round to two decimals if necessary.) (Round to two decimals if necessary.) (Round to two decimals if necessary.) See Hint 4 VIEW SOLUTION SUBMIT ANSWER
