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The Percentage Contribution Margin (PCM)for Each Firm in a Cournot PMCP=1N×1εQ.P\frac { P - M C } { P } = \frac { 1 } { N } \times \frac { 1 } { \varepsilon _ { Q . P } }

Question 21

Multiple Choice

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


A) PMCP=1N×1εQ.P\frac { P - M C } { P } = \frac { 1 } { N } \times \frac { 1 } { \varepsilon _ { Q . P } }
B) PMCp=1NεQ,P\frac { P - M C } { p } = \frac { 1 } { N } \varepsilon _ { Q , P }
C) PMCP=1N×1εQ.P\frac { P - M C } { P } = - \frac { 1 } { N } \times \frac { 1 } { \varepsilon _ { Q . P } }
D) PMCP=NN+1×1εQ.P\frac { P - M C } { P } = - \frac { N } { N + 1 } \times \frac { 1 } { \varepsilon _ { Q . P } }

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