In a Cournot Duopoly, a Residual Demand Curve

question 2

Multiple Choice

In a Cournot duopoly, a residual demand curve:

• A)is the same as a market demand curve.
• B)represents the demand curve that one firm faces given the output choice of the other firm.
• C)is the same as a marginal revenue curve when determining output in the Cournot model.
• D)is steeper than the market demand curve.

---

Definitions:

Active Steps

Measures or actions taken with deliberate effort and intention toward achieving a specific goal.

Fraudulent Misrepresentation

Involves knowingly making a false statement with the intent to deceive, leading another party to enter into a contract.

Mutual Mistake

A misunderstanding among all parties involved in a contract, making the contract potentially voidable.

Basic Assumption

An underlying assumption that is accepted as true without proof as the basis for argument or action.