How does industry-level price elasticity of demand shape the opportunities for making profit in an industry? How does the firm-level price elasticity of demand shape the opportunities for making profit in an industry?

5 What is the “revenue destruction effect”? As the number of Cournot competitors in a market increases, the price generally falls. What does this have to do with the revenue destruction effect? Smaller firms often have greater incentive to reduce prices than do larger firms. What does this have to do with the revenue destruction effect?