The Demand for the Output of a Multi-Firm Industry Is

Multiple Choice

The demand for the output of a multi-firm industry is Q_T = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 4Q₁. If this industry is comprised of 3 firms, the Cournot-Nash equilibrium output for firm 1 is:

A) 2 units.
B) 3 units.
C) 4 units.
D) 5 units.
E) None of the above is correct.