If a Cournot Duopolist Announced That It Will Double Its

question 53

Multiple Choice

If a Cournot duopolist announced that it will double its output,

• A) it becomes the leader.
• B) the other firm does not view the announcement as credible.
• C) the other firm will shut down.
• D) the other firm will double output also.

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Definitions:

Dollars

A unit of currency used in various countries, typically represented by the symbol $.

Simple Linear Regression

A statistical method that models the linear relationship between a dependent variable and one independent variable.

Standard Error of Estimate

Indicates the average distance that the observed values fall from the regression line, measuring the accuracy of predictions.

Estimated Values

Values computed from sample data that serve as approximations of population parameters.