a market with a dominant

a market with a dominant

a market with a dominant firm in initial equilibrium. Be sure to draw a large graph (we are going to add to it) and clearly label all relevant prices and quantities.Now, show the effect on the price and market quantity of a flattening of the competitive fringe supply curve (i.e. adownward).Comment on the differences, what do they imply about the new market power of the dominant firm?Solve for ??/??. What is its sign? What happens to the value of the derivative as S approaches 1? Why is this intuitive?

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