Managerial Economics & Business Strategy 8th Edition by Michael Baye,Jeff Prince

Exercise 11

Consider a Bertrand oligopoly consisting of four firms that produce an identical product at a marginal cost of $260. The inverse market demand for this product is P = 800 - 4 Q.
a. Determine the equilibrium level of output in the market.
b. Determine the equilibrium market price.
c. Determine the profits of each firm.