**Market Structure Analysis: Glyde Air Fresheners**Glyde Air Fresheners is a leading firm in the solid room aromatizer industry. The total market demand is expressed by the equation:\[ Q = 80 - 2P \]Glyde faces competition from four smaller firms (referred to as fringe firms) that produce where their individual marginal costs are equivalent to the market price. Each fringe firm has its total cost represented by the equation:\[ TC_i = 10Q_i + 2Q_i^2 \]Glyde’s own total cost is described by the equation:\[ TC_G = 100 + 6Q_G \]The main question posed is: **What are the total profits of the fringe firms?**To find the total profits of the fringe firms, we must consider their revenue, marginal costs, and total costs in relation to the market dynamics and competition presented by Glyde. Further analysis would require solving the equations for equilibrium price and quantity, and calculating the difference between total revenue and total costs for the fringe firms.

please find the naswer below.TC (fringe firms) = 10Qi + 2Qi2 MC (fringe firms) = 10 + 4Qi Let 'P' be the market price. Therefore, Qi = (P-10)/4 (MCi = P for fringe firms) Total production by fringe firms = 4Qi = P-10 Market demand : Q = 80 - 2P Demand facing Glyde (Qg) : Market demand - total production by fringe firms = 80-2P - (P-10) = 90 - 3P TCg = 100 + 6Qg MCg = 6 (d(TCg)/dQg) MRg = d(PQg)/dQg = d((90 - Qg)x Qg/3)/ dQg = 30 - 2Qg/3 setting MRg=MCg Qg = 36 and P = 18

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Glyde Air Fresheners is the dominant fırm in the solid room aromatizer industry, which has a total market demand given by Q = 80 – 2P. Glyde has competition from a fringe of four small firms that produce where their individual marginal costs equal the market price. The fringe firms each have total costs given by TC; = 10Q; + 2Q²;. If Glyde's total costs are given by TCG = %3D 100 + 6QG, what are the total profits of the fringe firms?

Glyde Air Fresheners is the dominant fırm in the solid room aromatizer industry, which has a total market demand given by Q = 80 – 2P. Glyde has competition from a fringe of four small firms that produce where their individual marginal costs equal the market price. The fringe firms each have total costs given by TC; = 10Q; + 2Q²;. If Glyde's total costs are given by TCG = %3D 100 + 6QG, what are the total profits of the fringe firms?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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