In a Cournot Oligopoly with N Firms and Identical Marginal

question 12

Multiple Choice

In a Cournot oligopoly with N firms and identical marginal costs,the relationship between the price elasticity of market demand and that of the firm is:

• A) E_M = E_F.
• B) E_M = NE_F.
• C) E_M = E_F/N.
• D) No deterministic relationship.

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