Question
A monopolist produces a product at constant marginal cost of 200, c = 200 , and chooses a wholesale price (ie, a price at which
A monopolist produces a product at constant marginal cost of 200, c = 200 , and chooses a wholesale price (ie, a price at which retailers can order the product from the wholesaler), pw . Given the wholesale price, each of n retailers orders as much of the product as it wants, where the quantity ordered by retailer i is given by qi and the total quantity by Q = qi i=1 n . Retailers sell all their output to consumers at a price, pr , that is determined by supply, Q, and demand, QD =1000 pr . Retailers have no costs, except for the wholesale price paid to the wholesaler for each unit.
n
Q= qi
i=1
Solve for the total quantity ordered by the retailers, Q
for this question do I have specific n value?
I got an answer of Q = nq
q = (1000- 200)/2(n+1) = 400/(n+1)
so 400n/(n+1) is my answer where can I get n value from this question?
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