Explore BrainMass

Oligopoly Quantity competition

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

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.

© BrainMass Inc. brainmass.com October 24, 2018, 6:35 pm ad1c9bdddf


Solution Summary

Oligopoly Quantity competition is assessed.

See Also This Related BrainMass Solution

Monopolistic Competition & Oligopoly

Explain which market structure this firm operating in attached file. Compare the long-run quantity and price to those of a perfectly competitive firm. What accounts for the difference? Is the equilibrium price greater than, equal to, or less than marginal cost? Why or why not?

View Full Posting Details