Suppose that there are 4 firms in an industry producing an identical product are Cournot competitors. If the industry is in Cournot-Nash equilibrium, allocative inefficiency as a percentage of allocative inefficiency under monopoly is:
A) 8 percent.
B) 16 percent.
C) 24 percent.
D) 32 percent.
E) 40 percent.
Correct Answer:
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