DO NOT PLAGIARISE DO NOT PLAGIARISE BUT PRACTICE
ONLY
Question 1
Suppose a large steel manufacturing industry consists of DDD identical firms and the
market demand curve is P=k−mqP = k - mqP=k−mq. Each firm's total cost is
0.5q2+10.5q^2 + 10.5q2+1.
(a) Find the Cournot equilibrium quantity per firm.
In Cournot competition, firms simultaneously choose quantities to maximize their profits.
Step-by-step solution:
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