In a given market three firms compete by choosing quantity simultaneously. The demand schedule is this market is P(Q) = 300 – 2Q. All the firms have the same cost function: C(q) = 140q - 100.(i) What is the equilibrium price, the quantity produce by each firm, the profit earned by each firm and the consumer surplus? Carefully explain your derivation and provide reasoning.

Demand function is P(Q)=300-2QCost function is C(q)=140q-100 Find: (i) The equilibrium price,…

Answered: In a given market three firms compete…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In a given market three firms compete by choosing quantity simultaneously. The demand schedule is this market is P(Q) = 300 – 2Q. All the firms have the same cost function: C(q) = 140q - 100.

(i) What is the equilibrium price, the quantity produce by each firm, the profit earned by each firm and the consumer surplus? Carefully explain your derivation and provide reasoning.

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