Homework 3B. Dominant firm model questionsAssume a market of a crude oil market. The world demand and the supply equations for OPEC (Price leader) andshale (follower) oil producers are as shown below:Qworld.D = 150 – 3P,MCOPEC = 5+ 0.4Qs.OPECMCSHALE = 30 + Qs.SHALE1.Find the market price2. Find the market quantity supplied by OPEC and market quantity supplied by Shale3. Find the profit of OPEC and profit of Shale oil producers

The market price is determined when market demand and market supply intersect each other.

Homework 3 B. Dominant firm model questions Assume a market of a crude oil market. The world demand and the supply equations for OPEC (Price leader) and shale (follower) oil producers are as shown below: Qwortas = 150 - 3P, MCOPEC -5+ 0.4Q5.OPEC MCSNALE = 30 + QssHALE 1. Find the market price 2. Find the market quantity supplied by OPEC and market quantity supplied by Shale 3. Find the profit of OPEC and profit of Shale oil producers

Homework 3 B. Dominant firm model questions Assume a market of a crude oil market. The world demand and the supply equations for OPEC (Price leader) and shale (follower) oil producers are as shown below: Qwortas = 150 - 3P, MCOPEC -5+ 0.4Q5.OPEC MCSNALE = 30 + QssHALE 1. Find the market price 2. Find the market quantity supplied by OPEC and market quantity supplied by Shale 3. Find the profit of OPEC and profit of Shale oil producers

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter26: Factor Markets: With Emphasis On The Labor Market

Section: Chapter Questions

Problem 13QP

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