Purchase Solution

Oligopoly Quantity competition

Not what you're looking for?

Ask Custom Question

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.

Attachments
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.