Problem: There is one dominant firm in an industry which has a total market demand given by Q = 100 - 3P. The dominant firm has competition from a fringe of five small firms that produce where their individual marginal costs equal the market price. The fringe firms each have total costs given by TCi = 2 + 12qi + 1.5qi2. If the dominant firm's total costs are given by TCD = 90 + 6.5QD, what price should the dominant firm charge?