In the Cournot Duopoly Model, Each Firm Assumes That

question 10

Multiple Choice

In the Cournot duopoly model, each firm assumes that:

• A) rivals will match price cuts but will not match price increases.
• B) rivals will match all reasonable price changes.
• C) the price of its rival is fixed.
• D) the output level of its rival is fixed.

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Definitions:

Bourgeoisie

The owners of the means of production.

Petite Bourgeoisie

A social class positioned between the lower middle class and the working class, often including small business owners and self-employed individuals.

Olin Wright

A sociologist known for his work on social class, inequality, and the possibilities for social change in capitalist societies.

Deindustrialization

The process of industrial decline in a region or economy, characterized by the closing of factories and the loss of manufacturing jobs.