Glyde Air Fresheners is the dominant firm in the solid room aromatizer industry,which has a total market demand given by Q = 80 - 2P.Glyde has competition from a fringe of four small firms that produce where their individual marginal costs equal the market price.The fringe firms each have total costs given by TCi = 10Qi + 2Q2i.If Glyde's total costs are given by TCG = 100 + 6QG,what price should Glyde establish for air fresheners?
A) $10.
B) $12.
C) $14.
D) $16.
E) $18.
Correct Answer:
Verified
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