3.7 Suppose there are n firms selling a homogeneous product at a constant marginal cost, m = 50, in a Cournot market. The inverse market demand curve is p = 200 - 2Q, where Q = nq. What is the output of each firm, and the market quantity and price when the number of firms is 1, 2, 5, 14, and 1,000?

As the number of firms increases, what happens to the firms’ market power? (Hint: See equations 14.16 and 14.17.)