Three silver mines near Goldenstate, are part of a national triopoly that consist of three main firms a, b and c.
P = 1000 – 1000x, the demand function,
p = price per ounce of gold
x = number of ounces of gold produced per day.
Marginal costs, although constant, vary at each firm.
Firm A is $100 per ounce
Firm B is $ 350 per ounce
Firm C is $ 400 per ounce
Determine the Cournot triopoly equilibrium, including
(i) The number of ounces of gold produced per day?
(ii) The price of gold?
(iii) The social surplus?
(iv) The M – Firm concentration ratio of this gold triopoly?
(v) The Herfindahl – Hirschman Index applicable
I have no idea how to do it. please help.
2007-10-21
06:52:14
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1 answers
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asked by
Anonymous
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Social Science
➔ Economics