What can you say, in general, about the Cournot-Nash equilibrium
quantities and prices as the number of sellers (n) competing in the
industry rises?
Now, think of two firms colluding to earn monopoly profits by
each agreeing to enjoy half the market share.
(i)If each firm honors this agreement, calculate each firm’s
level of output and the resulting profit enjoyed by each firm.
(ii)In general, when can such an arrangement be feasible, that
is, when will each firm have an...