All firms in a Cournot monopolistically competitive industry have the same cost function C(q) 25 10q. Market demand is Q 110 − p.
All firms in a Cournot monopolistically competitive industry have
the same cost function C(q) 25 10q. Market demand is Q 110 − p.
-(i) Calculate the equilibrium price, firm output, total output and number of firms in the industry for a long run equilibrium.
-(ii) Draw the optimal pricing equation as a function of n and the average cost function as a function of n.
-(iii) How would these values change if a franchise tax of $75 were imposed on each firm? In other words how would these values change if the fixed costs increased by $75? Use your drawing in part (ii) to help answer this question.
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”
The post All firms in a Cournot monopolistically competitive industry have the same cost function C(q) 25 10q. Market demand is Q 110 − p. appeared first on Superb Professors.
For any questions, feedback, or comments, we have an ethical customer support team that is always waiting on the line for your inquiries.