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All questions below rely on the following assumptions: p=20-0.25Q MC=8= Average Cost (5 pts) If there...

All questions below rely on the following assumptions:

p=20-0.25Q

MC=8= Average Cost

  1. (5 pts) If there is a monopoly firm in this industry, what is the profit-maximizing P and Q?

And what is the total profit?

  1. (5 pts) What is the profit maximizing P and Q for the two-firm Cournot oligopoly?

And what is the total profit?

  1. (5 pts) Assume that are three firms with equal Qs in this Cournot oligopoly.  What is the industry P and Q at the profit maximizing equilibrium?

And what is the total profit?

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Expert Solution

Rahul Sunny answered 4 months ago
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