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An industry consists of three firms. All three have identical variable costs VC(q) = 5q + q2, but whereas Firms 2 and 3 have fixed costs of $2,000, Firm 1’s fixed costs are $3,000. Market demand is Q = 335 – p and the firms play Cournot. What is the Herfindahl-Hirschman Index of the industry?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91673027

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