Question

An industry has 3 firms (1, 2 and 3) in Cournot competition. They have no fixed costs, and their constant marginal costs are respectively$c_1=\frac{9}{30} , 𝑐_2 =\frac{ 10}{30} , 𝑐_3 = \frac{11}{30} .$
They face an industry inverse demand function 𝑃=1−𝑄, where 𝑃 is the market price and 𝑄 is the industry output (sum of outputs of the 3 firms). Suppose that 𝑄 𝑐 is the industry output under Cournot-Nash equilibrium. Then (𝑄 𝑐 )−1 is equal to _______ (in integer).

Answer 1

The correct answer is: 2