If the Profit-Maximizing Markup Factor in a Three-Firm Cournot Oligopoly

question 25

Multiple Choice

If the profit-maximizing markup factor in a three-firm Cournot oligopoly is 2,what is the corresponding market elasticity of demand?

• A) −1/2
• B) −2/3
• C) −1.0
• D) −2.0

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Definitions:

Methylpropane

Another term for isobutane, a branched alkane with the formula \(C_4H_{10}\), used as a refrigerant and a propellant in aerosol sprays.

Methyl Isobutyrate

An organic compound with the formula C5H10O2, used as a flavoring agent and solvent.

Acid Chloride

Organic compounds belonging to the acyl chloride group, characterized by a carbon-oxygen double bond connected to a chlorine atom, used as intermediates in organic synthesis.

2° Amine

A type of amine where the nitrogen atom is attached to two alkyl or aryl groups and one hydrogen atom.