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Heterogeneous-cost Cournot Competition (view source)
Revision as of 22:36, 10 November 2013
, 22:36, 10 November 2013→Market clearing price and profits
==Market clearing price and profits==
Prices always come from the demand function. Firm's don't make profits by setting prices, the they make profits by providing less than competitive quantities. Accordingly first find the total quantity provided:
:<math>Q^* = \sum_{i=1}^n q_i^* = \frac{\left ( nA - sum_{i=1}^n c_i \right )}{B (n+1)}</math>
