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5 Consider a Cournot Model with three rms and inverse demand given by p = 1-q1-q2-q3. Cost functions are given by C1(q1) = 0, C2(q2)
5 Consider a Cournot Model with three rms and inverse demand given by p = 1-q1-q2-q3. Cost functions are given by C1(q1) = 0, C2(q2) = 1/2q2^2 1 and C3(q3) = 1/4q3. Using Matrix methods solve for the equilibrium quantities (That is set up the first-order conditions as above and invert A.)
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