Homework 3A.Dominant firm model questionsAssume a market of a crude oil market. The world demand and the supply equations for OPEC and shale oilproducers are as shown below:Qworid,D = 150 – 3P,MCOPEC = 5+ 0.4Qs.OPECMCSHALE = 35 + 2Qs,SHALE1. Find the critical price and critical quantity2. Find the market price3. Find the market quantity supplied by OPEC and market quantity supplied by Shale4. Find the profit of OPEC and profit of Shale oil producers

World Demand :Q = 150 - 3P Inverse demand : P = 50 - Q/3 MC of OPEC countries : 5 + 0.4Q MC for…

Homework 3 A. Dominant firm model questions Assume a market of a crude oil market. The world demand and the supply equations for OPEC and shale oil producers are as shown below: Qworla.o- 150 - 3P, MCopac = 5+ 0.4Qs0PeC MCMALE - 35 + 20,snALe 1. Find the critical price and critical quantity 2. Find the market price 3. Find the market quantity supplied by OPEC and market quantity supplied by Shale 4. Find the profit of OPEC and profit of Shale oil producers

Homework 3 A. Dominant firm model questions Assume a market of a crude oil market. The world demand and the supply equations for OPEC and shale oil producers are as shown below: Qworla.o- 150 - 3P, MCopac = 5+ 0.4Qs0PeC MCMALE - 35 + 20,snALe 1. Find the critical price and critical quantity 2. Find the market price 3. Find the market quantity supplied by OPEC and market quantity supplied by Shale 4. Find the profit of OPEC and profit of Shale oil producers

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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