The market for dental floss has m firms, each with a marginal cost of zero. Assume all dental floss is indistinguishable to consumers. The market is characterized by Cournot competition, where Firm 1 produces q₁ and all other firms each produce â. The market demand function is P = 100-19, where qi is quantity of floss produced by firm i. How can we write down Firm 1's marginal revenue? MR₁ = 100-291-(m + 1). OMR₁ = 100-9₁-(m-1)â. MR₁ [100-91-(m + 1)991. OMR₁ = 100-2q1 - (m-1)q.

The market for dental floss has m firms, each with a marginal cost of zero. Assume all dental floss is indistinguishable to consumers. The market is characterized by Cournot competition, where Firm 1 produces q₁ and all other firms each produce â. The market demand function is P = 100-19, where qi is quantity of floss produced by firm i. How can we write down Firm 1's marginal revenue? MR₁ = 100-291-(m + 1). OMR₁ = 100-9₁-(m-1)â. MR₁ [100-91-(m + 1)991. OMR₁ = 100-2q1 - (m-1)q.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 9E

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