Consider a market with one large firm and many small firms.The supply function of all of the small firms together is S(p)= 200 + p, the market demand curve is D(p)= 400 - p, and the cost function for the large firm is C(y)= 20y.The residual demand curve for the large firm, where D_L is the large firm's demand and y_L is the large firm's output, is A)D_L(p)= 400 - 21y_L. B)D_L(p) = 200 - 2p. C)D_L(p) = 600 - 2p. D)D_L(y_L)= 200 - 2p - 20y_L. E)D_L(y_L)= 200 - p + 20y_L.

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The Answer of Consider a market with one large firm and many small firms.The supply function of all of the small firms together is S(p)= 200 + p, the market demand curve is D(p)= 400 - p, and the cost function for the large firm is C(y)= 20y.The residual demand curve for the large firm, where D_L is the large firm's demand and y_L is the large firm's output, is A)D_L(p)= 400 - 21y_L. B)D_L(p) = 200 - 2p. C)D_L(p) = 600 - 2p. D)D_L(y_L)= 200 - 2p - 20y_L. E)D_L(y_L)= 200 - p + 20y_L.

Consider a Market with One Large Firm and Many Small