The percentage contribution margin (PCM)for each firm in a Cournot equilibrium can be calculated using the following formula:
A) $\frac { P - M C } { P } = \frac { 1 } { N } \times \frac { 1 } { \varepsilon _ { Q . P } }$
B) $\frac { P - M C } { p } = \frac { 1 } { N } \varepsilon _ { Q , P }$
C) $\frac { P - M C } { P } = - \frac { 1 } { N } \times \frac { 1 } { \varepsilon _ { Q . P } }$
D) $\frac { P - M C } { P } = - \frac { N } { N + 1 } \times \frac { 1 } { \varepsilon _ { Q . P } }$

Question

The percentage contribution margin (PCM)for each firm in a Cournot equilibrium can be calculated using the following formula: 
A) $\frac { P - M C } { P } = \frac { 1 } { N } \times \frac { 1 } { \varepsilon _ { Q . P } }$
B) $\frac { P - M C } { p } = \frac { 1 } { N } \varepsilon _ { Q , P }$
C) $\frac { P - M C } { P } = - \frac { 1 } { N } \times \frac { 1 } { \varepsilon _ { Q . P } }$
D) $\frac { P - M C } { P } = - \frac { N } { N + 1 } \times \frac { 1 } { \varepsilon _ { Q . P } }$

Quizplus · Accepted Answer

The Answer of The percentage contribution margin (PCM)for each firm in a Cournot equilibrium can be calculated using the following formula: 
A) $\frac { P - M C } { P } = \frac { 1 } { N } \times \frac { 1 } { \varepsilon _ { Q . P } }$
B) $\frac { P - M C } { p } = \frac { 1 } { N } \varepsilon _ { Q , P }$
C) $\frac { P - M C } { P } = - \frac { 1 } { N } \times \frac { 1 } { \varepsilon _ { Q . P } }$
D) $\frac { P - M C } { P } = - \frac { N } { N + 1 } \times \frac { 1 } { \varepsilon _ { Q . P } }$

The Percentage Contribution Margin (PCM)for Each Firm in a Cournot P−MCP=1N×1εQ.P\frac { P - M C } { P } = \frac { 1 } { N } \times \frac { 1 } { \varepsilon _ { Q . P } }PP−MC​=N1​×εQ.P​1​

The Percentage Contribution Margin (PCM)for Each Firm in a Cournot $\frac { P - M C } { P } = \frac { 1 } { N } \times \frac { 1 } { \varepsilon _ { Q . P } }$