How much of total demand do the follower firms supply

Reference no: EM13218664

Alchem (L) is the price leader in the polyglue market. All 10 other manufacturers (follower [F] firms) sell polyglue at the same price as Alchem. Alchem allows the other firms to sell as much as they wish at the established price and supplies the remainder of the demand itself. Total demand for polyglue is given by the following function (QT =QL +QF): P = 20,000 - 4 QT Alchem marginal cost function for the manufacturing and selling polyglue is MCL= 5,000 + 5QL The aggregate marginal cost function for the other manufacturers of polyglue is ?MCF=2,000 + 4QF B. What is the total market demand for polyglue at the price established by Alchem in Part (a)? How much of total demand do the follower firms supply?

Reference no: EM13218664

Questions Cloud

Determine firms equilbrium price and corresponding profit : suppose a single firm produces all of the output in a contestable market. The market inverse demand function is P=100 -Q, and the firm cost's function is C(Q) = 2Q. Determine the firm's equilbrium price and corresponding profits.

What does the scripture have to say about money : What about lowering interest rates and increasing money supply (i.e., monetary policy) If you were the chair economic advisor to the President of the United States, what would be your advice to him What does the Scripture have to say about money

Calculate how often to go to the atm : Using a spreadsheet program or a calculator, solve Tracy's problem of how often to go to the ATM when the nominal interest rate on her bank account is 10%, she spends $30 each day, it costs her $0.50 each time she uses the ATM,

Determine total profits for each firm at equilibrium output : Assume that two companies (C and D) are duopolists that produce identical products. Demand for the products is given by the following linear demand function: P = 600 Â- Qc- Qd Where Qc and Qd are the quantities sold by the respective firms and P i..

How much of total demand do the follower firms supply : Alchem (L) is the price leader in the polyglue market. All 10 other manufacturers (follower [F] firms) sell polyglue at the same price as Alchem. Alchem allows the other firms to sell as much as they wish at the established price and supplies the ..

Discuss the direction of change in price and quantity : Discuss the direction of change in price, quantity, and average total cost that you expect. Then check your answer by calculating price, quantity, and profit. You can refer back to graphical problems you solved in this news analysis to observe the..

Determine firm a-firm b and total industry profits : Assume that two companies (A and B) are duopolists who produce identical products. Demand for the products is given by the following linear demand function: P = 200 Â- Qa - Qb Where Qa and Qb are the quantities sold by the respective firms.

Examples of agricultural products : Name other examples of agricultural products that have attempted to differentiate themselves. How have they differentiated their product?

Determine the long-run equilibrium output and selling price : Assume that two companies (C and D) are duopolists that produce identical products. Demand for the products is given by the following linear demand function: P = 600 Â- Qc- Qd Where Qc and Qd are the quantities sold by the respective firms and P i..

User Account

All Pages