An industry consists of three firms with identical total cost functions C(q)=18q+q^2. Market demand is Q(P)=150-P....

 

Transcribed Image Text:

An industry consists of three firms with identical total cost functions C(q)=18q+q^2. Market demand is Q(P)=150-P. a) Find the Cournot-Nash equilibrium quantity, price and profits for this industry. b) Suppose a monopolist controlled the three firms. What would its cost function be? c) What would be this monopolist's quantity, price and profits? An industry consists of three firms with identical total cost functions C(q)=18q+q^2. Market demand is Q(P)=150-P. a) Find the Cournot-Nash equilibrium quantity, price and profits for this industry. b) Suppose a monopolist controlled the three firms. What would its cost function be? c) What would be this monopolist's quantity, price and profits?

Answer rating: 100% (QA)

a CournotNash equilibrium for three identical firms Total industry demand Q 150 P Each firm believes ... View the full answer