In the Cournot Model, If the Products Are Differentiated

question 29

Multiple Choice

In the Cournot model, if the products are differentiated,

• A)the firm can shift its demand curve to the right and make it less elastic.
• B)the firm's demand curve shifts to the left and becomes less elastic.
• C)the firm's demand curve shifts to the right and becomes more elastic.
• D)None of the above.

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Definitions:

Inflated Request

A strategy where an initially large and unreasonable request is made with the expectation of settling for a lesser demand.

Door-in-the-face Technique

A persuasion strategy where an initial, large request is made expecting refusal, followed by a smaller, more reasonable request.

That's-not-all Technique

A sales technique where an initial offer is made more appealing by adding something extra before the decision is made.

Bargain

An agreement between two or more parties as to what each party will do for the other, often involving negotiation on terms and conditions.