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. Suppose there are n identical firms in a Cournot equilibrium. Show that the absolute value of the elasticity of the market demand curve must
. Suppose there are n identical firms in a Cournot equilibrium. Show that the absolute value of the elasticity of the market demand curve must be greater than 1/n. (Hint: in the case of a monopolist, n = 1, and this simply says that a monopolist operates at an elastic part of the demand curve. Apply the logic that we used to establish that fact to this problem.)
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