Homework 3 B. Dominant firm model questions Assume a market of a crude oil market. The world demand and the supply equations for OPEC (Price leader) and shale (follower) oil producers are as shown below: Qworiao- 150 - 3P, MCOPEC =5+0.4Q5OPEC MCSHALE = 30 + Q5SHALE 1. Find the market price 2. Find the profit of OPEC and profit of Shale oil producers
Homework 3 B. Dominant firm model questions Assume a market of a crude oil market. The world demand and the supply equations for OPEC (Price leader) and shale (follower) oil producers are as shown below: Qworiao- 150 - 3P, MCOPEC =5+0.4Q5OPEC MCSHALE = 30 + Q5SHALE 1. Find the market price 2. Find the profit of OPEC and profit of Shale oil producers
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![Homework 3
B. Dominant firm model questions
Assume a market of a crude oil market. The world demand and the supply equations for OPEC (Price leader) and
shale (follower) oil producers are as shown below:
Qworld,D = 150 – 3P,
MCOPEC = 5+ 0.4Qs,OPEC
MCSHALE = 30 + Qs,SHALE
1.
Find the market price
2. Find the profit of OPEC and profit of Shale oil producers](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2fc617bf-34e2-4dfe-9c82-05711b32c702%2F26f385ac-c0d3-4b6a-ac5b-b852463c25b2%2F6ofm0ng_processed.png&w=3840&q=75)
Transcribed Image Text:Homework 3
B. Dominant firm model questions
Assume a market of a crude oil market. The world demand and the supply equations for OPEC (Price leader) and
shale (follower) oil producers are as shown below:
Qworld,D = 150 – 3P,
MCOPEC = 5+ 0.4Qs,OPEC
MCSHALE = 30 + Qs,SHALE
1.
Find the market price
2. Find the profit of OPEC and profit of Shale oil producers
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