(Answered) Consider a dominant firm facing an inverse demand p100-q

Economics

Consider a dominant firm facing an inverse demand P=100-Q, with marginal cost 18. The supply of competitive fringe is P=10+4Q. In equilibrium, the price-cost margin for the dominant firm is 0.64.

Q1) Find the outputs of dominant firm and competitive fringe.

* Show the calculations!!!

Q2) Suppose the supply of competitive fringe is P=10+2Q. What is the price-cost margin for the dominant firm?

*Show the calculations!!!

Q3) What is the price-cost margin for a monopoly facing the same demand and marginal cost?

*Show the calculations!!!

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