Answered: Suppose that the market demand is Qd =…

Suppose that the market demand is Qd = 50-10P. Three identical firms with constant MC=1 operate in the market with Cournot competition. What is the output of firm 3? O 10 O 25 O 32 40

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter15: Oligopoly And Strategic Behavior

Section: Chapter Questions

Problem 12P

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Question

Suppose that the market demand is Qd = 50-10P. Three identical firms with
constant MC=1 operate in the market with Cournot competition. What is
the output of firm 3?
O 10
O 25
O 32
O 40

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Price 2001 110 80 65 20 O $2,025 O $4,050 $8,100 Du O $3,600 Dominant Firm Market DR 45 60 MRR 90 In equilibrium, what will the dominant firm's profit be? 110 135 Quantity SF MC 200
Figure A Competitive Firm1.2 %24 MC ATC Given P1 =$7.00 P2 = S8.50 P3 =$9.20 AVC P3 B P2 P1 MR Q1%=100.00 Quantity Q1 Refer to Figure A Competitive Firm1.2. At an output level of Q1, the losses is about ONo answer text provided. O No answer text provided. O $240 O $220 %24