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Question: A firm in an oligopolistic industry has identified two sets of demand curves. If the firm is the only one that changes prices (i.e., other firms do not follow), its demand curve takes the form Q = 82-8P. If, however, it is expected that competit
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A firm in an oligopolistic industry has identified two sets of demand curves. If the firm is the only one that changes prices (i.e., other firms do not follow), its demand curve takes the form Q = 82-8P. If, however, it is expected that competitors will follow the price actions of the firm, then the demand curve is of the form Q = 44 -3P. a) Develop demand schedules for each alternative, and draw them on a graph b) Calculate marginal revenue curves for each. c) If the present price and quantity ...

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  • by yashvidyapeeth • 
  • uploaded  08-08-2020
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