The Cournot Model of Oligopoly Is One in Which Competing

question 45

Multiple Choice

The Cournot model of oligopoly is one in which competing firms:

• A)independently choose prices to maximize individual profits.
• B)collusively choose prices to maximize joint profits.
• C)independently choose quantities to maximize individual profit.
• D)collusively choose quantities to maximize joint profits.

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Definitions:

Highway Tractors

Trucks designed primarily for the transportation of goods over long distances, characterized by a powerful engine and a cab for the driver.

Compressor

Any of a number of mechanically driven devices used to compress a gas. In trucks, compressors are used in air brake systems and A/C systems.

Ambient Air

The natural, outdoor air environment surrounding a particular area, not conditioned by heating or cooling systems.

Spring Brake Assembly

A combination of brake parts including a spring mechanism in heavy-duty vehicles for parking or emergency braking.