Now suppose there are N identical firms in the market, all with the same marginal and average costs. Using the Cournot mechanism, wherein each firm chooses its output simultaneously:
f. How much will each firm produce [Qi = f(N)] ?
g. What will be the single market price each firm will charge [P = f(N)] ?
h. Demonstrate that as N becomes large(r), the market price and profit per firm approach those that would prevail under perfect competition.