If a Cournot Duopolist Announced That It Will Double Its

question 104

Multiple Choice

If a Cournot duopolist announced that it will double its output,the other firm does not view the announcement as credible because

• A) the announcing firm's profits will fall if it carries out the threat.
• B) the other firm's profits will fall if the announcing firm carries out the threat.
• C) the other firm's profits will rise if the announcing firm carries out the threat.
• D) the other firm will double output also.

---

Definitions:

Drawbar

The device used to connect a trailer tongue to either a pintle hook or a ball hitch.

Pintle Hook

A type of towing hitch used to connect trailers or other towable equipment to a vehicle or equipment, characterized by a hook-and-loop configuration.

Fiber Reinforced Plywood (FRP)

A composite material made by reinforcing plywood with fibers to enhance its strength and durability.

Trailer Construction

The process or methodology of building structures designed to be pulled behind a vehicle, often involving the assembly of chassis, body, and components.