"A retired customer that has a portfolio of blue chip stocks is looking to supplement his retirement income. An appropriate reco
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Answer:
if n=1 (monopoly) we have
if n goes to infinity (approaching competitive level), we get the competition quantity that would be
Explanation:
In the case of a homogeneous-good Cournot model we have that firm i will solve the following profit maximizing problem
from the FPC we have that
since all firms are homogeneous this means that
then
the industry output is then
if n=1 (monopoly) we have
if n goes to infinity (approaching competitive level), we get the competition quantity that would be