How much will the industry as a whole produce

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Reference no: EM13183560

Suppose that you are on the board of directors of a firm which is the dominant firm in the industry. That is, it lets all of the other firms, which are much smaller, sell all they want at the existing market price. In other words the smaller firms act like perfect competitors. Your firm, on the other hand, sets the market price, which the other firms accept. The demand curve for your industry's product is

P = 300 - Q
where P is the product's price and Q is the total quantity demanded. The total amount supplied by the other firms is equal to QR where
QR = 49P.
If your firm's marginal cost curve is given by
MC = 2.96QL
where QL is the output of your firm, at what output level should you operate to maximize profit? What price should you charge? How much will the industry as a whole produce?

Reference no: EM13183560

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