Requires calculus In the model of a dominant firm, assume that the fringe supply curve is given by Q= -1 + 0.2P, Where P is market price and Q is output Demand is given by Q= 11-P.
What will price and output be if there is no dominant firm? Now assume that there is a dominant firm, whose marginal cost is constant at $6.00. Derive the residual demand curve that it faces and calculate its profit-maximizing output and price.