Multiple Choice
Suppose you compete in a Cournot oligopoly market consisting of six firms.The equilibrium market price and quantity are $5 and 10 units,respectively.The marginal cost for each firm is $3.Based on this information,we know the price elasticity of the market demand is:
A) −0.417.
B) 0.167.
C) −2.4.
D) There is insufficient information to answer this question.
Correct Answer:
Verified
Correct Answer:
Verified
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