Question
Microeconomics Question on Utility Function
An industry has 6 firms in Cournot competition. Each of the 6 firms has zero fixed costs, and a constant marginal cost equal to 20. The product is homogenous and the industry inverse demand function is given by 𝑃 = 230 − 𝑄, where 𝑃 is the market price and 𝑄 is the industry output (sum of outputs of the 6 firms). The market price under Cournot-Nash equilibrium is equal to _____ (in integer).
Answer
The correct answer is :50