Three firms compete a la Cournot (compete in a Cournot Competition). Each firm has constant marginal cost c. Inverse demand curve is 1 - Q, where Q is the total quantity. Firm 1 moves first, and chooses q₁ . After firm 1 chooses q₁, firms 2 and 3 move second and simultaneously choose q₂ and q₃ . Find the equilibrium quantities q₁, q₂, q₃ .

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In a Cournot competition each firm chooses its quantity to maximize its profit taking into account t... View the full answer