Suppose the market demand for a homogeneous product is given by Q = a-Bl where a and 3 are positive constants. The product is supplied by a dominar firm with a constant marginal cost c> 0 and n competitive fringe firms, eac of which has a cost function ci(qi) = q?/(2k₁) for i = 1, ..., n, where kį > 0 is parameter. Suppose the dominant firm moves first to maximize its profits b setting a price P, followed by competitive fringe firms setting their quantiti simultaneously to maximize their profits, respectively, taking the price as giver (a) Compute the equilibrium price and quantity level for each firm. (b) How does the presence of competitive fringe firms affect the equilibriu price, as compared to the monopoly price by the dominant firm?

Consider an industry with 2 firms engaging in quantity competition and facing the market demand function as Q = 200 – 4P. Suppose each firm bears the same cost production as C(q) = 100 + 0.25q? when producing q units. a. Derive Firm 1's best response function, q1(q2), against Firm 2's output level choice, q2. b. Find the equilibrium output level of Firm 1 at the N.E. equilibrium. c. Find the deadweight loss caused by the duopoly. d. Find again the equilibrium output level of Firm 1 if it acts as the leader while Firm 2 as the follower.

An upstream firm (U) sells an input to a downstream firm (D) which resells it to consumers. The marginal cost of U is 4. Each unit is sold by U to D at a transfer price r. Requirement final is p = 12 - y. a) Suppose U and D are separate firms. Find r, y and p. b) Suppose U and D are one integrated firm. Find p and y. c) Suppose the firms are not integrated, but firm U uses a two-part tariff: it requires payment of r for each unit sold to D; in addition, it requires payment lump sum of T. Find the value of r that U will choose. Find the minimum and maximum values by T. d) Suppose the firms are not integrated, but U imposes a resale price control on firm D. Find the value of r that U will choose, and the constraint that it will impose on the price final p

An upstream firm (U) sells an input to a downstream firm (D) which resells it to consumers. The marginal cost of U is 4. Each unit is sold by U to D at a transfer price r. Requirement final is p = 12 - y. a) Suppose U and D are separate firms. Find r, y and p. b) Suppose U and D are one integrated firm. Find p and y. c) Suppose the firms are not integrated, but firm U uses a two-part tariff: it requires payment of r for each unit sold to D; in addition, it requires payment lump sum of T. Find the value of r that U will choose. Find the minimum and maximum values by T. d) Suppose the firms are not integrated, but U imposes a resale price control on firm D. Find the value of r that U will choose, and the constraint that it will impose on the price final p   Plzz give the answer of all questions.