In: Economics
All questions below rely on the following assumptions:
? = 20-0.25?
?? = 8 = Average Cost
a)What is the profit maximizing P and Q for the two‐firm Cournot oligopoly? And what is the total profit?
b)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?