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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.

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Answer #1

Ans) the correct option is c) price approaches average cost.

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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