A Cournot oligopoly has tw0000o identical firms whose total costs are TC = 1,000+ 12qwhere q, is firm i's output

Economics Dec 13, 2020

A Cournot oligopoly has tw0000o identical firms whose total costs are TC = 1,000+ 12qwhere q, is firm i's output. The inverse demand for the market is P = 120 - 0/6, where is total output. a. Derive the firms' reaction curves. b. Calculate the Cournot equilibrium values of 91, 92 and P. c. If there are five firms with TC = 1,000 + 129, what are the Cournot equilibrium values of each firm's output and P?

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