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ll]. Demand for a homogenous product is p = 4 Q. where Q is the total quantity producer! in the market. A monopolist (M) has
ll]. Demand for a homogenous product is p = 4 Q. where Q is the total quantity producer! in the market. A monopolist (M) has a east function Clo\") = no\". A potential entrant (E) has a eost function CHE] : o5, plus an entry cost of l which they don't have to pay if they stay out. a. Suppose the entrant already entered. Find the Cournot Nash Equilibrium quantities and prots (answer will be in terms of the parameter e]. 1:. Suppose instead E stays out. Find the monopoly quantity and prot {again in terms of c). e. For this part, assume e = 1 anti the monopolist can commit ahead of time to a quantity q. 1What is the lowest quantity that prevents the entrant from entering? 1:]. Given M can't commit to quantity, why is it not sequentially rational to set the \"limit price" style quantity from part c
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