In the Cournot Model, When a New Firm Begins Production

question 171

Multiple Choice

In the Cournot model, when a new firm begins production it assumes its demand curve is

• A) the market demand less the amount the other firm is selling.
• B) the market demand plus the amount the other firm is selling.
• C) the same as the competing firm's demand curve.
• D) one-half of the competing firm's demand curve.

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Definitions:

Percent

A part or portion of a whole expressed as a fraction of 100.

Increase

A rise or growth in quantity, size, intensity, or extent of a particular object or phenomenon.

Modernization Theory

is a sociological theory that looks at the processes through which societies move from traditional or less developed institutions to those characteristic of more developed societies.

Functionalism

A theoretical perspective in sociology that views society as a complex system whose parts work together to promote solidarity and stability, focusing on the social functions of different structures.