An Industry consists of many identical firms with cost function c(q) = q + 1. When...

 

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An Industry consists of many identical firms with cost function c(q) = q + 1. When there are j active firms, each firm faces an individual inverse market demand p = 10-15q-(-1) whenever the other -1 firms produce the same output level q 0 In the short-run, suppose there is no entry or exit. What is the market price and quantity in the Cournot equilibrium with j firms? In the long-run, entry and exit is allowed. What will be the number of active firms? An Industry consists of many identical firms with cost function c(q) = q + 1. When there are j active firms, each firm faces an individual inverse market demand p = 10-15q-(-1) whenever the other -1 firms produce the same output level q 0 In the short-run, suppose there is no entry or exit. What is the market price and quantity in the Cournot equilibrium with j firms? In the long-run, entry and exit is allowed. What will be the number of active firms?