Question: 2. Consider the model presented in class, Where a rm's demand is given by the following 1 _ P =S[b PP ], q( ) N

2. Consider the model presented in class, Where a rm's demand is given by the following 1 _ P =S[b PP ], q( ) N ( ) and the rm's cost function be given by C(q)=c*q+F. Suppose the economy is characterized by the following parameters 8:100, b=l, F=4, c=l/2 a. Assume that initially there are 4 rms (N =4), nd the price charged and quantity sold by each rm, as well as the average price level and prots (if any) made by each rm. b. Show your solution to (a) graphically

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