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. 0.167.
B. ?2.4.
C. ?0.417.
D. There is insufficient information to answer this question.
Answer: C
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Suppose a small regional airport is served by one of the major airlines, and a new low-cost airline enters the market
If the major airlines cuts its air fares in this market to levels that are below its marginal cost in response to the other firm's entry, then the major airline may be engaging in A) parallel conduct. B) parallel pricing. C) predatory pricing. D) unlawful collusion.
Why does a tax create a greater deadweight loss with an elastic supply or demand curve?
What will be an ideal response?
If Britain, at the point where it is currently producing, must give up the production of 75 hats to produce 25 additional sweaters, the opportunity cost of producing 3 hats is _______ sweater(s).
A) 1 B) 3 C) 22 D) 28
Explain the principal–agent problem in business
Please provide the best answer for the statement.