92. 43. These three firms are the only firms in the market, so the sum of their outputs is equal to total market supply, i.e. q1+q2+q3=Q. Suppose demand is given by P=12-Q. For simplicity of calculation, suppose each firm has marginal costs of 0, i.e. c1(q1)=0, c2(q2)=0 and c3(q3)=0. (1) What quantity does Firm 1 produce in the SPNE of the game? (2) What quantity does Firm 2 produce in the SPNE of the game? (3) What quantity does Firm 3 produce in the SPNE of the game?

92. 43. These three firms are the only firms in the market, so the sum of their outputs is equal to total market supply, i.e. q1+q2+q3=Q. Suppose demand is given by P=12-Q. For simplicity of calculation, suppose each firm has marginal costs of 0, i.e. c1(q1)=0, c2(q2)=0 and c3(q3)=0. (1) What quantity does Firm 1 produce in the SPNE of the game? (2) What quantity does Firm 2 produce in the SPNE of the game? (3) What quantity does Firm 3 produce in the SPNE of the game?

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 13PAE

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