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3. There are five firms that produce homogeneous products and that are Cournot competitors. The market demand curve is given by P = 60-Q. Two
3. There are five firms that produce homogeneous products and that are Cournot competitors. The market demand curve is given by P = 60-Q. Two of the firms have a marginal cost of 10 per unit, while the remaining three have a marginal cost of 20 per unit. Solve for the Cournot Nash equilibrium quantities and the corresponding price and profits. You may assume that in equilibrium all firms with the same marginal cost produce the same quantity
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