Consider a homogenous-product Cournot oligopoly with 4 firms. Suppose that the inverse demand function is P(Q)=64-Q. Suppose that firms incur a constant marginal cost c=4.
Consider a homogenous-product Cournot oligopoly with 4 firms. Suppose that the inverse demand function is P(Q)=64-Q. Suppose that firms incur a constant marginal cost c=4. Answer the following questions. (a) Suppose that firm 1 and 2 consider merging and that they are synergies leading to marginal cost cm
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