The demand for the output of a multi-firm industry is QT = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC1= 4Q1. If this industry is comprised of 19 firms, the Cournot-Nash equilibrium output for firm 1 is:
A) 0.2 units.
B) 0.4 units.
C) 0.6 units.
D) 0.8 units.
E) 1 unit.
Correct Answer:
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