Suppose that the demand curve for an industry's output is a downward-sloping straight line and there is constant marginal cost.Then the larger the number of identical firms producing in Cournot equilibrium, the lower will be the price.

Question

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In a Cournot equilibrium, each firm chooses its output level based on the assumption that its competitors' outputs are fixed. As the number of identical firms producing increases, the total industry output increases, leading to a decrease in price since the demand curve is downward-sloping. This is because each firm's output has a smaller impact on the overall market quantity and price. Therefore, the larger the number of firms producing in Cournot equilibrium, the lower the price.

Suppose That the Demand Curve for an Industry's Output Is