What the market price is given the price leaders output

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Reference no: EM1315559

Q. Assume the salmon-packaging industry comprises a price leader also two small firms which behave competitively. The cost functions of the three are:
price-leader CL = 0.05qL2 + 1.75qL
competitive firms C1 = 0.05q¬12 + 3q1
C2 = 0.1q22 + 3q2

The market demand is q = 50 - 5p

(a) Conclude the short-run supply curve for the competitive firms.

(b) Conclude the residual demand curve facing the price leader.

(d) Illustrate what the market price is given the price leader's output in (c).

(e) Elucidate how much does each competitive firm produce?

Reference no: EM1315559

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