Suppose in the ice-cream market with 10 firms,the elasticity of market demand is -1,and each firm has a constant marginal cost at $2.The Nash-Cournot equilibrium price is

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The Nash-Cournot equilibrium price is $2.2. This is because the elasticity of market demand is -1, which means that a 1% increase in price will lead to a 1% decrease in quantity demanded. This means that firms will have to lower their prices in order to sell more ice cream. The Nash-Cournot equilibrium is the point where each firm is producing the quantity of ice cream that maximizes its profit, given the quantity of ice cream that the other firms are producing. At this point, each firm is producing 1/10 of the total market demand, and the market price is $2.2.

Suppose in the Ice-Cream Market with 10 Firms,the Elasticity of Market