Solve question 3 onlys and correctly QUESTION 3An industry consists of three firms with identical costs C(q) = 18q + q 2. Market demand is Q = 150 – p. What is the industry Cournotequilibrium if firms 1 and 2 merge (to jointly produce output q12)?O 912-36; q3=24; p=90O 912-32; q3=28; p=60O 912=93=20; p=80O 912=25; q3=22; p=48QUESTION 4An industry consists of three firms with identical costs C(q) = 18q + q2. Market demand is Q = 150 – p. What are the Cournot equilibriumprofits for each firm if firms 1 and 2 merge (where T12 are the profits of the newly formed firm)?O T12=940; t3=1022O 12=1244; t3=1008O 12=1642 n3=1155O 12=1944; t3=1152

Given: An Industry Consist of three firms with identical Cost- C(q) = 18q + q2 Market Demand- Q =…

QUESTION 3 An industry consists of three firms with identical costs C(q) = 18q + q 2. Market demand is Q = 150 – p. What is the industry Cournot equilibrium if firms 1 and 2 merge (to jointly produce output q12)? 912=36; q3=24; p=90 O 912=32; q3=28; p=60 O 912=93=20; p=80 O 912=25; q3=22; p=48

QUESTION 3 An industry consists of three firms with identical costs C(q) = 18q + q 2. Market demand is Q = 150 – p. What is the industry Cournot equilibrium if firms 1 and 2 merge (to jointly produce output q12)? 912=36; q3=24; p=90 O 912=32; q3=28; p=60 O 912=93=20; p=80 O 912=25; q3=22; p=48

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter12: Price And Output Determination: Oligopoly

Section: Chapter Questions

Problem 2E

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