Imagine that the cell-phone market is made up of one large firm that leads the industry and sets its own price first, while smaller firms in the industry follow. There are 20 such smaller fiırms, each with a supply function of q; = 67.50 + for i = 1,2, ..., 20 firms, while p is the %3D per-unit price. Total market demand for cell phones is given by the function Q = 6, 700.00 - p. If the cost function for the leading firm is CL(AL) = 104L, calculate the following values: %3D Leading firm's production: q1 = (Round to two decimals if necessary.) Total follower firm production: qF = (Round to two decimals if necessary.) Equilibrium price: p = $ (Round to two decimals if necessary.)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Imagine that the cell-phone market is made up of one large firm that
leads the industry and sets its own price first, while smaller firms in the
industry follow. There are 20 such smaller firms, each with a supply
function of q; = 67.50 + for i = 1,2, ..., 20 firms, while pis the
per-unit price. Total market demand for cell phones is given by the
function Q = 6, 700.00 – p. If the cost function for the leading firm is
CL(qL) = 109L, calculate the following values:
%3D
Leading firm's production: q1 =
(Round to two decimals
if necessary.)
Total follower firm production: qF =
(Round to two
decimals if necessary.)
Equilibrium price: p = $
(Round to two decimals if
necessary.)
Transcribed Image Text:Imagine that the cell-phone market is made up of one large firm that leads the industry and sets its own price first, while smaller firms in the industry follow. There are 20 such smaller firms, each with a supply function of q; = 67.50 + for i = 1,2, ..., 20 firms, while pis the per-unit price. Total market demand for cell phones is given by the function Q = 6, 700.00 – p. If the cost function for the leading firm is CL(qL) = 109L, calculate the following values: %3D Leading firm's production: q1 = (Round to two decimals if necessary.) Total follower firm production: qF = (Round to two decimals if necessary.) Equilibrium price: p = $ (Round to two decimals if necessary.)
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