3.9 Consider the Cournot model with n firms. The inverse linear market demand function is p = a -...

3.9 Consider the Cournot model with n firms. The inverse
linear market demand function is p = a - bQ. Each of the n identical firms has
the same cost function C(q) = Aq_{i }+ 12Bq_{2i }, where a 7 A.
In terms of n, what is each firm’s Nash equilibrium output and profit and the
equilibrium price? As n gets very large (approaches infinity), does each firm’s
equilibrium profit approach zero? Why? M