Roach Motors is the dominant used-car dealer in a small Midwestern city. After paying $50,000 for overhead, Roach Motors' cost per car is $500. There are 4 other small used-car lots in this town, but since they are not large enough to purchase cars through the same discount sources as Roach, each firm faces the cost function C = 5,000 + 600Q + 5Q². The demand for used cars is Q = 600 - . Assuming Roach sets the market price so as to maximize its profit, how many cars will each of the follower firms supply?

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The Answer of Roach Motors is the dominant used-car dealer in a small Midwestern city. After paying $50,000 for overhead, Roach Motors' cost per car is $500. There are 4 other small used-car lots in this town, but since they are not large enough to purchase cars through the same discount sources as Roach, each firm faces the cost function C = 5,000 + 600Q + 5Q². The demand for used cars is Q = 600 - . Assuming Roach sets the market price so as to maximize its profit, how many cars will each of the follower firms supply?

Roach Motors Is the Dominant Used-Car Dealer in a Small