Homework answers / question archive / An industry has a demand curve given by P(Q) = 100 -0

An industry has a demand curve given by P(Q) = 100 -0

Economics

Share With

An industry has a demand curve given by P(Q) = 100 -0.020, where Q is the total output in the industry. The dominant firm's cost function is TC(q) = 40q. In addition, there are 25 small firms. These firms are known as the 'competitive fringe' of the market. These small firms all take as given the price established by the dominant firm in the industry. All small firms have the same cost function: TC = 60q+q2. The profit maximizing price quantity for the dominant firm is = 66 76 71 81 None of the above