c, c represents marginal cost, and n represents thea+ncnumber of firms in the industry. The equilibrium quantity supplied by a firm isа-сa+nc9i =for i = 1, . . , n and the equilibrium price is...

Extracted text: The Lerner index at the equilibrium of the linear Cournot symmetric model is equal а-с to L (n) where a>c, c represents marginal cost, and n represents the a+nc number of firms in the industry. The equilibrium quantity supplied by a firm is а-с a+nc 9i = for i = 1, . . , n and the equilibrium price is p* (n) = From n+1 n+1 this it can be concluded that as n increases without bound: the individual quantity supplied decreases. the equilibrium price converges to a value greater than the marginal cost. the markup increases towards one. the total quantity in the market increases.