In a Cournot Oligopoly with N-Firms and Identical Marginal Costs

question 10

Multiple Choice

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

• A)E_F = E_M.
• B)E_F = NE_M.
• C)E_F = E_M/N.
• D)E_F = N/E_M.

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Definitions:

Correlation Coefficient

A numerical measure that indicates the extent of a linear relationship between two variables, ranging from -1 to 1.

Independent Variable

The variable in an experiment that is manipulated or changed to observe its effect on the dependent variable.

Dependent Variable

In statistical modeling, this is the variable being tested and measured, often considered the outcome variable that researchers are interested in explaining or predicting.

Correlation Coefficient

A numerical measure that assesses the strength and direction of the linear relationship between two quantitative variables.