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Question: problem i suppose that in a market of a certain...

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PROBLEM I. Suppose that, in a market of a certain product, there is a single dominant firm with a cost function CQ)-cQ, where c >0 is a constant, and the competitive fringe with a supply function Q(p)p-120 The market demand function is given by QM(p) 600-3p Q1. When c 100, the dominant firms profit-maximizing quantity is (a) 100. (b) 144 (c) 180 (d) 160. (e) 120 02. When c 100, the equilibriun market price of the product is (a) 120. (b) 140 (c) 180 (d) 210 (e) 160 Q3. When e = 100, what is the market slare of the dominant firm? (Choose the closest.) (a) 89% (b) 92% (e) 80% (d) 95% (e) 97% Q4. Under what condition of e does the competitive fringe produce nothing at the equilibrium? (a) e 2 40. (b) eS 90. (c) e 2 100 (d) 100SeS40 (e) cs 60
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