Suppose the market demand curve (D) in an oligopoly market characterized by a dominant firm and a fringe is given by Q = 25 - 2P. The fringe supply curve is given by QF = -1 + 0.3P. If the marginal cost of production for the dominant is $3, calculate the market price and total output produced by the dominant firm and the fringe
a. Q = 14.42 units and P = $8.64
b. Q = 10.69 units and P = $7.15
c. Q = 12.69 units and P = $6.5
d. Q = 8.74 units and P = $5.15
B
You might also like to view...
What reason do economists believe that megabanks are forming?
A) Megabanks enable economies of scale in information processing which allows them to better serve their customers. B) Megabanks create economies of scale which allow the banks to make riskier investment and increase profits. C) Megabanks can compensate for their economies of scale by diversifying into many countries. D) Megabanks allow investors more opportunities and have continued to grow by using their economies of scale to overwhelm their competition.
A firm’s production process shows constant returns to scale. It can produce 5,000 widgets at a total cost of $2,500 and 10,000 widgets at an average cost of
A. $10,000. B. $5,000. C. $2,000. D. $0.50.
For De Beers, the diamond company, diamond mines are ________ for their production
A) capital services B) labor services C) materials D) None of above.
The financial crisis and recession which began in 2007:
A. impacted only high-income countries. B. did not impact the United States. C. impacted many countries in the world. D. impacted only low-income countries.