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Consider an industry with the following structure. There are 50 firms that behave in a competitive manner and have identical cost functions given by C(y) = y2/2 . There is one monopolist that has 0 marginal cost. The demand curve for the product is given by
D(p) = 1000 - 50p
(a) What is the supply curve of one of the competitive firms? Find the total supply from the competitive sector at price
(b) Find the monopolist's profit maximizing output. What is the monopolist's profit-maximizing price? How much output will the competitive sector provide at this price? What will be the total amount of output sold in this industry?
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Draw the market diagram and calculate the equilibrium price and quantity, and total welfare in the market (graph at end of answer).
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assume that two companies c and d are duopolists that produce identical products. demand for the products is given by
Solve for the optimal bundle using Lagrangian optimiation, and simplify as much as you can. Don't forget to consider both interior and corner solutions.
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derive the long-run equilibrium for the dynamic ad-as model. assume there are no shocks to demand or supply t vt 0
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