Oligopoly Quantity competition
Not what you're looking for?
Firm A is the dominant firm in a market where industry demand is given by Qd = 48-4P. There are four "follower" firms, each with long-run marginal cost given by MC= 6 + Qf. Firm A's long run marginal cost is 6.
a. Write the expression for the total supply curve of the followers (qs) as this depends on price. (Remember, each follower acts as a price taker.)
b. Find the net demand curve-facing firm A. Determine A's optimal price and output. How much output do the other firms supply in total?
Please see attached.
Purchase this Solution
Solution Summary
Oligopoly Quantity competition is assessed.
Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.