Think about an business which consists of three an identical companies which can be Cournot oligopolists. The inverse market demand isP(Q)=100-Qwhere Q=q1+q2+q3 & qi is output of agency i, i E . Every agency has a relentless common price of $20.1. Derive the cournot equilibrium output & revenue for a agency in addition to the market value. What’s the H-index for this market?2. Suppose two of those companies ponder merging with each other. Assume that the merger has no influence on the typical price and, thus, it stays at $20 for all companies. The merger solely modifications the market focus. Derive the post-merger Cournot equilibrium output and revenue for a agency in addition to the market value.three. Because the merger has no influence on the manufacturing effectivity, any incentive for merger should come from a possible improve in market energy. Is there an incentive to merge on this case?four. Present merger to monopoly (all three companies merging collectively) is worthwhile
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