Economics Consider a three-firm homogeneous product industry. The market demand function is X=1000-40P. The cost functions of the firms are: C1= 20X1, C2=13.5X2+0.075X22, and C3=16.3X3+0.005X32. Where, X=X1 + X2 + X3. 1. Explain the Firm's Cournot Behaviour. 2. Assuming the firms' practice on Cournot Behaviour, calculate the market price, outputs of the firms and their profits

Economics Consider a three-firm homogeneous product industry. The market demand function is X=1000-40P. The cost functions of the firms are: C1= 20X1, C2=13.5X2+0.075X22, and C3=16.3X3+0.005X32. Where, X=X1 + X2 + X3. 1. Explain the Firm's Cournot Behaviour. 2. Assuming the firms' practice on Cournot Behaviour, calculate the market price, outputs of the firms and their profits

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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