In a Cournot oligopoly with N firms and identical marginal costs,the relationship between the price elasticity of demand for the firm and that of the market is: A) E_F = E_M. B) E_F = NE_M. C) E_F = E_M/N. D) E_F = N/E_M.

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In a Cournot oligopoly, the price elasticity of demand for an individual firm's product (E_F) is equal to N times the price elasticity of demand for the market as a whole (E_M). This reflects the fact that each firm's output decision affects the market price and thus the demand for its product, with the factor N representing the number of firms in the oligopoly.

In a Cournot Oligopoly with N Firms and Identical Marginal