Question 4
This is about a dominated oligopolistic market. Consider a dominant firm D with large market share and three fringe firms F with small market share. Dominant firm D is the price setter and three fringe firms F are price followers in the market. Market demand is Q(P)=10,000-P and the supply of three fringe firms is Q(P)=P-6,000.
【題組】(b) Suppose marginal cost of dominant firm is MC<sub>d</sub>=5,000. Find
market price P= _______
the output of dominant firm Q<sub>d</sub>= _______
and the output of fringe firms Q<sub>f</sub>= _______