13.10. A homogeneous products oligopoly consists of four firms, each of which has a constant marginal cost

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13.10. A homogeneous products oligopoly consists of four firms, each of which has a constant marginal cost MC ! 5. The market demand curve is given by P ! 15 " Q.

a) What are the Cournot equilibrium quantities and price? Assuming that each firm has zero fixed costs, what is the profit earned by each firm in equilibrium?

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Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

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