Consider homogeneous-good cournot oligopoly

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Reference no: EM131242431

Consider a homogeneous-good Cournot oligopoly with n >2 identical firms with C(q) = 0 and P(Q) = e^{- Q}; for Q >0:

a) Find the Cournot equilibrium outputs, price and profit.

b) Find all the merger sizes m (2 < m < n) that are profitable to the merged entity. Are these mergers also profitable to the non-merging firms?

Reference no: EM131242431

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