9781118041581

FIGURE 9.2

Optimal Output for a Dominant Firm

The dominant firm’s net demand curve is the difference between industry demand and the competitive supply

of small firms.

362 Chapter 9 Oligopoly

d Leader’s

net demand

Industry demand

Supply curve

for small firms

D

S

d

MC

MR

Dollars per Unit of Output

Output

D

Q* Qs

P′

P*

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