What will price and output be if there is no dominant firm

Reference no: EM13232345

In the model of a dominant firm, assume that the fringe supply curve is given by Q = -1 + 0.2P, where P is market price and Q is output. Demand is given by Q=11-P.

What will price and output be if there is no dominant firm? Now assume that there is a dominant firm, whose marginal cost is constant at $6. Derive the residual demand curve that it faces and calculate its profit-maximizing output and price.

Reference no: EM13232345

Questions Cloud

What unique challenges do research and development : critical thinking questions: what unique challenges do research and development labs provide for KM implementation? What is the benefit of MITRE's evolutionary approach to KM?

What was a contributory factor to the migration of europeans : What was a contributory factor to the migration of Europeans?

Explain what is the molar mass of sample of gas : What is the molar mass of 1.00-g sample of gas that occupies a volume of 750 mL at a pressure 725. mm Hg and a temperature of 27.0°C?

Explain the cellular and antibody immunity : Write a prargraph to explain why the response of the third line of defence, both cellular and antibody immunity, is specific in nature

What will price and output be if there is no dominant firm : What will price and output be if there is no dominant firm Now assume that there is a dominant firm, whose marginal cost is constant at $6. Derive the residual demand curve that it faces and calculate its profit-maximizing output and price.

What are the major options for appraisal of employees : What are the major options for appraisal of employees? Discuss each option, identifying the one that you think is "Best", and why you chose that option.

After 1910 population growth in europe : After 1910, population growth in Europe:

Discuss each of the major forms and methods for performance : Discuss each of the major forms and methods for performance appraisal. Provide an aduquate summary of each.

Contrast adjustment process to new equilibrium at lower rate : The firms and workers in Alpha form expectations adaptively. The firms and workers in Omega form expectations rationally. Their otherwise identical economies are initially in equilibrium at the natural level of output with 10 percent inflation.

User Account

All Pages