Which of the Following Is an Assumption of the Cournot

question 85

Multiple Choice

Which of the following is an assumption of the Cournot model?

• A) There is only one firm in an industry.
• B) Each firm takes the output of the other firm as given.
• C) The firms behave so as to maximize their revenues.
• D) Firms collude to fix prices and quantities.

---

Definitions:

Rate of Return

The profit or loss of an investment over a particular period, represented as a proportion of the initial investment amount.

Employee Morale

The overall outlook, attitude, satisfaction, and confidence that employees feel at work.

Capital Investment

Financial allocation towards the purchase or maintenance of long-term assets such as property, plants, and equipment, with the expectation of generating future returns.

Qualitative Characteristic

A feature used to describe or categorize non-quantitative aspects of items, events, or conditions, often used in accounting and finance to evaluate factors that are not numerically based.