All questions below rely on the following assumptions: ? = 20-0.25? ?? = 8 = Average...

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?

Expert Solution

Rahul Sunny answered 1 year ago

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