4-question-about-managerial-economics

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The demand function for an oligopolistic market is given

by the equation, Q = 180 – 4P, where Q is quantity demanded and

P is price. The industry has one dominant firm whose marginal cost

function is: MC = 12 + .1QD, and many small firms, with a total

supply function: QS = 20 + P.

(a) Derive the demand equation for the dominant oligopoly firm.

(b) Determine the dominant oligopoly firm’s profit-maximizing output

and price.

(c) Determine the total output of the small firms.