Let Q = S[n – 3(P - AP)] be the demand for a firm product in a monopolistic competition market, where P is the firm’s pr
Posted: Thu May 26, 2022 7:39 am
Let Q = S[n – 3(P - AP)] be the demand for a firm product
in a monopolistic competition market, where P is the firm’s price,
AP is average price in the industry and n is the number
of firms in the industry. Suppose S = 9375 is Home market size; S =
27000 is Foreign market size. Suppose firms are symmetric in
each country. Home’s firms have a total cost C = 5 + Q and
Foreign’s firms have a total cost C = 10 + 2Q. The equilibrium
number of firms at Home under autarchy is:
in a monopolistic competition market, where P is the firm’s price,
AP is average price in the industry and n is the number
of firms in the industry. Suppose S = 9375 is Home market size; S =
27000 is Foreign market size. Suppose firms are symmetric in
each country. Home’s firms have a total cost C = 5 + Q and
Foreign’s firms have a total cost C = 10 + 2Q. The equilibrium
number of firms at Home under autarchy is: