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In: Economics

a)Describe the Herfinderhl Index, what does it measure? (b) Assume that the demand is linear; P(Q)...

a)Describe the Herfinderhl Index, what does it measure?

(b) Assume that the demand is linear; P(Q) = A-bQ, where Q = ∑qi from i=1 to N (A and b are parameters). Suppose also that there are N firms and all firms have the same cost function, C = cqi Marginal cost is constant and equal to c. Find the Cournout equilibrium.

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Rahul Sunny answered 3 years ago
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