Re: ISI 2014

Posted by Dr. Strange on Apr 28, 2016; 8:01pm
URL: http://discussion-forum.276.s1.nabble.com/ISI-2014-tp7600130p7600164.html

let no. of firms = n
each firm produces x
p=100-nx
profit of firm i = (100-nx)x-(25+x^2)
differentiating wrt x we get 50=x(n+1)
at prfct equilm,total profit of industry=0
(100-nx)(nx)-n(25+x^2)=0
solving,
x=0.5,n=99, p=50.5, qtotal=49.5