I am reading Melitz and Ottaviano (2008), but I find it hard to understand some math in the model.
, which implies a demand function:
Then the paper says the "inverse demand function can then be inverted to yield the linear market demand system for these varieties":
But what operations do they take in getting the function $q_i$?
I am very confused on dealing with the $Q_c$ variable, which is defined to be :
Thanks.