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Margaret [11]
2 years ago
9

A market has many small firms and one dominant firm. Market demand is givby 100-4P. The dominant firm has a constant marginal co

st of S4. All the smaller fringe firms combined have a supply curve given by Qs 6P-20. The profit-maximizing quantity produced by the dominant fim is_____.
Business
1 answer:
horsena [70]2 years ago
4 0

Answer: Marginal cost under demand and supply theory.  Answer is 80

Explanation: QD 100-4P, Marginal Cost =S4,QS =6P -20. So

the calculation goes thus  = QS=6p-20

Inputing Marginal value of 4 equates 100-4(4)

100-16 = 84

QS=6(4)-4

24-20=4

profit maximisation =QD-QS

84-4=80

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