In the Cournot Model, the Firm Chooses

question 26

Multiple Choice

In the Cournot model, the firm chooses:

• A)its optimal price, holding the price of its competitors constant.
• B)its best response to the price changes of the competitor firm.
• C)its optimal level of output, holding the output of the other firm constant.
• D)the level of output that would optimize profits for all firms.

---

Definitions:

Malaria

Disease caused by the protozoan Plasmodium vivax; transmitted by the Anopheles mosquito.

Fungi

A kingdom of organisms that includes molds, yeasts, and mushrooms, which live by decomposing and absorbing the organic material in which they grow.

Lichens

Symbiotic associations between a fungus and a photosynthetic partner (usually an algae or cyanobacteria), living together on surfaces like rocks or trees.

Algae

A diverse group of photosynthetic organisms that are not necessarily closely related, ranging from unicellular microalgae to large multicellular forms, inhabiting both freshwater and marine environments.