Suppose You Compete in a Cournot Oligopoly Market Consisting of Four

Multiple Choice

Suppose you compete in a Cournot oligopoly market consisting of four firms.The equilibrium market price and quantity are $8 and 20 units,respectively.The marginal cost for each firm is $4.Based on this information,we know the price elasticity of the market demand is:

A) −0.5.
B) 0.5.
C) −.25.
D) There is insufficient information to answer this question.