... to q1C q2D Q: 33 For the conditions required for existence of a solution to these nonlinear equations and hence for Nash equilibrium, see Novshek (1985) and Amir (1996). 34 In general, a system ... chapter 3. 1 .3 Competitive Environments: Perfect Competition, Oligopoly, and MonopolyIn a perfectly competitive environment, market prices and output are determined bythe interaction of demand and ... animportant one.1 .3. Competitive Environments 37 demands in the estimation of production functions (see, for example, the discussionin Olley and Pakes 1996; Levinsohn and Petrin 20 03; Ackerberg et...