Glyde Air Fresheners is the dominant firm in the solid room aromatizer industry, which has a total market demand given by Q = 80 - 2P. Glyde has competition from a fringe of four small firms that produce where their individual marginal cost equals the market price. The fringe firms each have a total cost given by: TCi = 10Qi + 2Qi2. If Glyde’s total costs are given by TCG = 100 + 6QG a) what price should Glyde establish for air fresheners? b) what is Glyde’s maximum profit?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Glyde Air Fresheners is the dominant firm in the solid room aromatizer industry, which has a total market demand given by Q = 80 - 2P. Glyde has competition from a fringe of four small firms that produce where their individual marginal cost equals the market price. The fringe firms each have a total cost given by: TCi = 10Qi + 2Qi2. If Glyde’s total costs are given by TCG = 100 + 6QG

a) what price should Glyde establish for air fresheners?

b) what is Glyde’s maximum profit?

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