Consider a Cournot Oligopoly Consisting of Five Identical Firms Producing

Multiple Choice

Consider a Cournot oligopoly consisting of five identical firms producing good X.If the firms produce good X at a marginal cost of $7 per unit and the market elasticity of demand is −3,determine the profit-maximizing price.

A) $7.50 per unit
B) $5.25 per unit
C) $7 per unit
D) $4.20 per unit