**Question: **Consider an oligopoly in which the inverse demand function is

\[p\left( \sum\limits_{i=1}^{n}{{{x}_{i}}} \right)=a-b\sum\limits_{i=1}^{n}{{{x}_{i}}},\,\,a,b>0\]

and each firm’s cost \(c\left( {{x}_{i}} \right)=c{{x}_{i}}\), \(0<c<a\). First, given *n*, determine the Cournot-Nash equilibrium output, profit, deviation of price from marginal cost and deadweight loss. Then evaluate the limits of all those as *n* tends towards infinity. Comment on the significance of your results.

**Solution:**The solution consists of 165 words (2 pages)

**Deliverables:**Word Document