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Suppose in the ice-cream market with 10 firms, the elasticity of market demand is -1, and each firm has a [NB1]constant marginal cost at $2.

Suppose in the ice-cream market with 10 firms, the elasticity of market demand is -1, and each firm has a [NB1]constant marginal cost at $2. The Nash-Cournot equilibrium price is

A) $2.

B) $2.2.

C) $2.4.

D) $2.5.

Answer:A

Notes: the answer is A. Could you please explain why? Thank you. Please do not copy from other solutions posted.

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