Chapter 15, Problem 15.2P

a)

To determine

To determine profit maximising price-quantity combination and profits for a monopolist.

b

To determine

Nash equilibrium quantities for Cournot duopolists, which choose quantities simultaneously. Also compute market output, market price, and firm and industry profits.

c)

To determine

Nash equilibrium prices for Bertrand duopolists. Also compute firm and market output, and firm and industry profits.

d)

To determine

Nash equilibrium quantities for $n$ identical firms in a Cournot model. Also compute market output, market price, and firm and industry profits.

e)

To determine

To show monopoly outcome from part (a) can be reproduced in part (d) by setting $n=1$ , that the Cournot duopoly outcome from part (b) can be reproduced in part (d) by setting $n=2$ in pard $(d)$ , and that letting $n$ approach infinity yields the same market price, output and industry profits as in part (c).