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Suppose the demand function in the industry is p= 100 - y and each firm has a constant marginal cost of $40 and no fixed
Suppose the demand function in the industry is p= 100 - y and each firm has a constant marginal cost of $40 and no fixed costs. If the Cournot model of oligopoly accurately reflects firm behaviour in this industry, then the aggregate equilibrium output of n+ 1 firms can be expressed as:
A)60(n+ 1)/(n+ 2).
B) 160n/(n+ 1).
C)20(n+ 1).
D) 160(n+ 1)/(n+ 2).
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