In the Cournot Model, If One Firm Increases Its Output

question 4

Multiple Choice

In the Cournot model, if one firm increases its output

• A)the market will not clear because now there is a surplus.
• B)the market price drops, reducing the revenues received by the other firms.
• C)the others will kick it out of the oligopoly.
• D)the other firms are unaffected.

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Definitions:

Illumination

The deliberate use of light to achieve a practical or aesthetic effect.

Brightness

The perception of how light or dark a color appears; a quality of visual experience that varies with lighting conditions.

Optic Nerve

The cranial nerve that transmits visual information from the retina to the brain, playing a crucial role in the sense of sight.

Visual Information

Data that is perceived through sight, including shapes, colors, and movements.