Question: Suppose there are J identical rms , that entry by additional rms is eectively blocked, and that each rm has identical costs, C ( qj
Suppose there are J identical rms that entry by additional rms is
eectively blocked, and that each rm has identical costs, C qj cqj :
Let inverse market demand be the linear form, p a b
PJ
j qj where
a ; b :
a Show that the CournotNash equilibrium outputs are the same
for all rms
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