Consider a market in which three firms compete as quantity setters (i.e. firms are engaged in Cournot competition), and the market demand curve is given by Q= 6,000-10P. All firms have constant marginal cost equal to 100. In equilibrium, quantity supplied by each firm and the price are: Q-5000 and P-100 Q-1000 and P-200 Q=2500 and P = 225 Q=1250 and P = 225
Consider a market in which three firms compete as quantity setters (i.e. firms are engaged in Cournot competition), and the market demand curve is given by Q= 6,000-10P. All firms have constant marginal cost equal to 100. In equilibrium, quantity supplied by each firm and the price are: Q-5000 and P-100 Q-1000 and P-200 Q=2500 and P = 225 Q=1250 and P = 225
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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