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

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

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

Group of answer choices

the total industry output declines asymptotically.

the difference between price and marginal cost increases.

price approaches average cost.

the equilibrium price steadily increases.

the price elasticity of demand for the product falls.

business economics

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Answer 1

Answer #1

Ans) the correct option is the difference between price and marginal cost increases

If the number of firms in the market under Cournot competition increases the market price will decrease and the market quantity will increase.

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Answer 2

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

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