Problem
Firm A is the dominant firm in a market where industry demand is given by QD= 48 - 4P. There are four "follower" firms, each with long-run marginal cost given by MC = 6 + QF. Firm A's long-run marginal cost is 6.
a. Write the expression for the total supply curve of the followers (QS) as this depends on price. (Remember, each follower acts as a price taker.)
b. Find the net demand curve facing firm A. Determine A's optimal price and output. How much output do the other firms supply in total?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.