Bertrand oligopolists are facing a market (inverse) demand curve p (q) =a 􀀀-bq. Oligopolist i has (total) cost function C (qi) = cqi for all i.
Calculate the Nash equilibrium of the Bertrand oligopoly when there is 3 …firms.What happens to the pro…ts of each oligopolist as N increases in the preceding question? What happens to the market price as N increases?