The Percentage Contribution Margin (PCM) for Each Firm in a Cournot

question 42

Multiple Choice

The percentage contribution margin (PCM) for each firm in a Cournot equilibrium can be calculated using the following formula:

• A) \(\frac { P - M C } { P } = \frac { 1 } { N } \times \frac { 1 } { \varepsilon _ { Q f} }\)
• B) \(\frac { P - M M C } { P } = \frac { 1 } { N } \varepsilon _ { Q , P }\)
• C) \(\frac { P - M C } { P } = - \frac { 1 } { N } \times \frac { 1 } { \varepsilon _ { Q f} }\)
• D) \(\frac { P - M C } { P } = - \frac { N } { N + 1 } \times \frac { 1 } { \varepsilon _ { Q f } }\)

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