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In the Cournot Model of Quantity Competition, as the Number

Question 36

Multiple Choice

In the Cournot model of quantity competition, as the number of firms increases:


A) the total industry output declines asymptotically.
B) the difference between price and marginal cost increases.
C) price approaches average cost.
D) the equilibrium price steadily increases.
E) the price elasticity of demand for the product falls.

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