Consider an industry with 6 identical firms, each facing a demand Q = 30,000 x [1/6 - 1/20 (p - p)], where Q is the output level by the firm, p is the price charged by the firm and p is the average price in the industry. Suppose each firm has a fixed cost 7500 and a marginal cost 35. What is p in a symmetric equilibrium when there is no entry or exit of any firm? (Round your answer to the nearest integer.) Your Answer:

Consider an industry with 6 identical firms, each facing a demand Q = 30,000 x [1/6 - 1/20 (p - p)], where Q is the output level by the firm, p is the price charged by the firm and p is the average price in the industry. Suppose each firm has a fixed cost 7500 and a marginal cost 35. What is p in a symmetric equilibrium when there is no entry or exit of any firm? (Round your answer to the nearest integer.) Your Answer:

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter15: Imperfect Competition

Section: Chapter Questions

Problem 15.4P

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