In the Cournot Model of Oligopoly

question 20

Multiple Choice

In the Cournot model of oligopoly,:

• A)each firm chooses simultaneously and non-cooperatively how much to produce to maximize its own profit.
• B)each firm chooses simultaneously and non-cooperatively its own product's price to maximize its own profit.
• C)one firm acts as a quantity leader, choosing its quantity first, while all other firms act as followers, choosing their quantities second and in reaction to the first.
• D)each firm makes its profit-maximizing decision while considering the entire market demand, the same as a monopolist.

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Definitions:

Expected Behavior

The behavior that individuals or groups are anticipated to exhibit based on societal norms, rules, or standards.

Specific Time

A clearly defined or fixed moment or period on a timeline.

Work Focus

The concentration on job-related tasks and responsibilities, often leading to higher productivity and efficiency in professional settings.

Egalitarian Values

The belief in the equality of all people, emphasizing equal rights, opportunities, and treatment for all individuals.