In the Cournot model, we assumed there were two firms in competition.
Instead suppose that there is only one firm, a monopolist, producing at quantity q. Formulate a model to determine the optimal production quantity. Compare the optimal production quantity for the monopolist with the quantities derived in the Cournot duopoly assuming c1 = c2 = c. Does competition produce lower prices?
In the Cournot model, we assumed there were two firms in competition.