-Figure 8.1 depicts the market demand for the product produced by n firms producing an identical product in which MC = 0 for each firm. If Q' = 100,000 and total industry output is 95,000 units, there are _____ in the industry according to the Cournot model.

Question

Quizplus · Accepted Answer

In the Cournot model, the number of firms (n) can be calculated using the formula n = Q'/Q - 1, where Q' is the market demand and Q is the total industry output. Substituting the given values, n = 100,000/95,000 - 1 = 19.

-Figure 81 Depicts the Market Demand for the Product Produced by by N