Reference no: EM131251167
The market demand curve in the nickel industry in Australia is given by Qd = 400 - 8P. The industry is dominated by a large firm with a constant marginal cost of $10 per unit. There also exists a competitive fringe of 100 firms, each of which has a marginal cost given by MC = 10 - 50q, where q is the output of a typical fringe firm.
a) What is the equation of the supply curve for the competitive fringe?
b) Restricting your attention to the range of prices that exceed the dominant firm's marginal cost, what is the equation of the residual demand curve?
c) What is the profit-maximizing quantity of the dominant firm? What is the resulting market price? At this price, how much does the competitive fringe produce, and what is the fringe's market share (i.e., the fringe quantity divided by total industry quantity)? What is the dominant firm's market share?
d) Let's consider a twist on the basic dominant firm model. Suppose the Australia government, concerned about the amount of dominance in the nickel industry decides to break the dominant firm into two identical firms, each with a constant marginal cost of $10 per unit. Suppose further that these
two firms act as Cournot quantity setters, taking into account the supply curve of the competitive fringe. What is the Cournot equilibrium quantity produced by each dominant firm? What is the equilibrium market price? At this price, how much does the competitive fringe produce, and what is the fringe's market share?
|
What different inparticipation on social justice and peace
: Compare your experience with the serviceplacement experience of the student you interviewed. What ways are they similar and different inparticipation on social justice and/or peace? What new insights did you gain from this interviewto understand w..
|
|
Formulate and justify an investment policy statement
: Formulate and justify an investment policy statement setting forth the appropriate guidelines within which future investment actions should take place.
|
|
Display a form allowing the user to enter the players names
: Display a form allowing the user to enter the players' names. Display a form that can be used during a game to record the points scored by each player. Display the total points scored by each player and by the team.
|
|
International magazines and more
: The Super Global International Food Market is filled with nuts, books, vegetables, fruits, rice, foreign DVDs, international magazines and more.
|
|
What is the equation of the residual demand curve
: Restricting your attention to the range of prices that exceed the dominant firm's marginal cost, what is the equation of the residual demand curve?
|
|
Design a class street that contains a equally spaced houses
: Next, design a class Street that contains a number of equally spaced houses. An object of type Street stores the first house, the last house (which can be anywhere on the screen), and the number of houses on the street.
|
|
Strategic-management process
: SWOT (TOWS) analysis; on FaceBook. A formal, in-depth case analysis requires you to utilize the entire strategic-management process. You will be required to make exhibits to support your analysis and recommendations. The case analysis must be 2-3 ..
|
|
What new insights did gain from interview to understand ways
: Compare your experience with the service placement experience of the student you interviewed. What ways are they similar and different in participation on social justice and/or peace? What new insights did you gain from this interview to understan..
|
|
What are capital gains and qualified dividend tax rate
: What are Capital Gains and Qualified Dividend tax rate? How do we determine for each taxpayer based on their marginal tax rate?
|