5. Assume a market demand curve of D(P) = 60−2P and a fringe supply curve of S(P) = P − 5. Assume a cost curve for the incumbent of C(Q) = 10 + 4Q. Find the market outcome in terms of price and quantity both for a monopolist not facing a fringe and a large dominant firm facing a fringe. Be sure to both solve for and graph the dominant firm’s demand and marginal revenue curves [in both the regions where they differ from the whole market’s curves and the regions where they coincide with the whole market’s curves].

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