Consider the following four models

(a) p = 20 − 3Q

(b) p = 20 − 3Q Q = q1 + q2 Q = q1 + q2 + q3 TC1 = 4q1 TC1 = 4q1 TC2 = 4q2 TC2 = 4q2 TC3 = 4q3

(c) p = 20 − 3Q

(d) p = 20 − 3Q Q = q1 + q2 Q = q1 + q2 + q3 TC1 = 4q2 1 TC1 = 4q2 1

TC2 = 4q2 2 TC2 = 4q2 2

TC3 = 4q2 3

(i) Establish the Cournot solution for each.

(ii) What, if anything do you observe about the dynamic behaviour in comparing n = 2 as against n = 3 for constant MC? (Take initial points from the monopoly position in each case.)

(iii) What, if anything, do you observe about the dynamic behaviour in comparing model

(a) with model

(b) and model

(c) with model (d)?

(Take initial points from the monopoly position in each case.)