Question: Consider a market where the demand function is D ( p ) = 20 - p (implying that the inverse demand function is p =

Consider a market where the demand function is D(p) = 20 - p (implying that the inverse demand function is p = 20 - Q , where Q is industry output).There are three firms in this market, producing, , and (so that industry output is ), and competition is of the Cournot type. The three firms have constant marginal costs, but different efficiency levels. Specifically, the marginal costs are , , and .

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