1.The firms compete in a Cournot oligopoly. A more general, useful, and easier formula for the output of any firm i (firm 1 or firm 2, etc) than provided in B&P is:

Q_i = where j is the number of firms competing in the Cournot oligopoly and c = MC for all firms.

For parts d and g, six (6) firms compete in a Cournot oligopoly.

a.How much will each firm produce in equilibrium?

Answer:

e.What is the total market supply?

Answer:

f.What is the equilibrium price?

Answer:

g.Compare the cartel, Cournot duopoly, and 6-firm Cournot oligopoly price.What do you conclude about the relationship between competition and price? Of the oligopoly models examined above (including the Bertrand model), which produces the lowest and highest price?

Answer:

Please show work.