As the Number of Firms in a Cournot Industry Increases

question 49

Multiple Choice

As the number of firms in a Cournot industry increases:

• A)the level of output falls.
• B)the price of output approaches the competitive level.
• C)the firms' incentive to collude increases.
• D)the price of output gets higher.

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Definitions:

Standard Deviation

A statistical measure of the dispersion or spread in a set of data, indicating how much the individual data points diverge from the mean.

Beta

A measure of a stock's volatility in relation to the overall market, indicating its sensitivity to market movements.

Risk-Adjusted Performance

A method to measure an investment's return by taking into account its risk exposure, giving a more accurate depiction of performance.

Eugene Fama

An American economist and Nobel laureate known for his work on the efficient-market hypothesis.