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Consider a n- firm oligopoly market where the market demand curve is p = 1000 - q where p is the market price and q
Consider a n- firm oligopoly market where the market demand curve is p = 1000 - q where p is the market price and q is the aggregate market output, that is q = q1 + q2 + ... + qn. Suppose a firm's cost function is c1(q1) = 200 2qi which means that the firms are symmetric. So the fixed cost is 200 and the marginal cost is 2. Calculate the equilibrium output produced by each firm, the equilibrium market output and price, and the profit of each firm
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