Determine equilibrium price and ?rm equilibrium quantity

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Reference no: EM131167300

Consider the following market with 3 ?rms where 1 ?rm has a substantial market share (the leader), and the other 2 ?rms are the minor competitors (followers). All ?rms, however, share the same technology with the costs MC = 5. The demand is P = 120−3Q. (a) Determine the equilibrium price and each ?rm’s equilibrium quantity and price. (b) How will you answer to part (a) change if all ?rms have the same market power?

Reference no: EM131167300

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