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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) PMCP=1N×1εQf\frac { P - M C } { P } = \frac { 1 } { N } \times \frac { 1 } { \varepsilon _ { Q f} }
B) PMMCP=1NεQ,P\frac { P - M M C } { P } = \frac { 1 } { N } \varepsilon _ { Q , P }

C) PMCP=1N×1εQf\frac { P - M C } { P } = - \frac { 1 } { N } \times \frac { 1 } { \varepsilon _ { Q f} }
D) PMCP=NN+1×1εQf\frac { P - M C } { P } = - \frac { N } { N + 1 } \times \frac { 1 } { \varepsilon _ { Q f } }

Correct Answer:

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