Perfect competition, game theory and monopoly
Please see the attached file. 1. Consider a perfectly competitive, constant-cost industry with market demand curve Q = 540 -30P In the short-run, there are 100 -rms operating in the market. Each -rm has TV C(q) = q 2 and -xed costs of $20. For 50 of the -rms, $4 of these -xed costs are sunk, and for the other 50, all $20 ar