Show how the Cournot equilibrium for n firms changes if each firm faces a fixed cost of F as well as a constant marginal cost per unit.

Let market demand be p=abQ,

where a and b are positive parameters with n firms.

Assuming it is optimal for the firms toproduce, a typicalfirm's best-response function with fixedcosts, F,is:

qi=

Notes:

Please show all the steps and provide explanation of your solution. Thank you.