2. There are five firms in an industry and one of them is a dominant firm and this industry suppliesnearly a homogeneous product. Market demand function for the production of all the five firms isgiven as QM= 100-2P. Combined supply function of four small firms is given as Qs=10+P. Totalcost function for the dominant firm is given as TCD= 50+6QD+ 0.25QDi)ii)Calculate the price and quantity supplied by the four small firms togetherDerive the demand function for the dominant firm111)Calculate the profit maximizing quantity and price for the dominant firm.iv)Calculate the total demand

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There are five firms in an industry and one of them is a dominant firm and this industry supp early a homogeneous product. Market demand function for the production of all the five fir ven as QM= 100-2P. Combined supply function of four small firms is given as Qs=10+P. T ost function for the dominant firm is given as TCp= 50+6QD+0.25QD

There are five firms in an industry and one of them is a dominant firm and this industry supp early a homogeneous product. Market demand function for the production of all the five fir ven as QM= 100-2P. Combined supply function of four small firms is given as Qs=10+P. T ost function for the dominant firm is given as TCp= 50+6QD+0.25QD

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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