Consider an oligopoly market with 3 firms. They face a demand curve given by p(Q) = 300-5Q, where Pmin refers to the lowest price offered by any firm. The marginal costs are the following: C₁ = 80, C₂ = 200, C3 = 210. The fixed costs for each firm are zero and firms compete a la Bertrand. Which of the following is consistent with a Nash equilibrium of this game? e refers to the minimal price change possible. (a) Pmin (b) Pmin (c) Pmin = = = 190 and only firm 1 sells. 200 - € and only firm 1 sells. E 200 and firms 1 and 2 sell.

Consider an oligopoly market with 3 firms. They face a demand curve given by p(Q) = 300-5Q, where Pmin refers to the lowest price offered by any firm. The marginal costs are the following: C₁ = 80, C₂ = 200, C3 = 210. The fixed costs for each firm are zero and firms compete a la Bertrand. Which of the following is consistent with a Nash equilibrium of this game? e refers to the minimal price change possible. (a) Pmin (b) Pmin (c) Pmin = = = 190 and only firm 1 sells. 200 - € and only firm 1 sells. E 200 and firms 1 and 2 sell.

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Oligopoly

Section: Chapter Questions

Problem 9PA

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