Which of the Following Is NOT a Feature of Cournot

question 102

Multiple Choice

Which of the following is NOT a feature of Cournot competition?

• A) Firms sell identical products.
• B) Firms compete by choosing a quantity to produce.
• C) All goods sell at the same price.
• D) One firm sets its quantity to produce before the other firm.

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Definitions:

Monopolist

A single seller in a market who has significant control over the price and supply of a particular good or service, facing no competition.

Constant Unit Cost

The situation where the cost to produce each additional unit of output remains unchanged.

Inverse Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded, plotted with price on the y-axis and quantity on the x-axis, inversely.

Cartel

An agreement among competing firms to control prices, production, and distribution of goods, often to restrict competition and maximize profits.