The demand for baseball bats in a large city is given by P(Q…
The demand for baseball bats in a large city is given by P(Q) = 86 – 2Q. Suppose the demand for baseball bats in this large city is satisfied by four firms (n=4) with identical constant marginal (and average) costs of $6. Suppose that firms compete by setting quantities. What is the Cournot equilibrium profit earned by each firm in this market?