Both Firms in a Cournot Duopoly Would Experience Lower Profits

question 83

Multiple Choice

Both firms in a Cournot duopoly would experience lower profits if

• A)there was an increase in marginal production costs.
• B)each firm simultaneously increased output above the Nash equilibrium level.
• C)one firm reduced output below the Cournot Nash equilibrium level, while the other firm continued to produce its Cournot Nash equilibrium output.
• D)there was an increase in marginal production costs and ne firm reduced output below the Cournot Nash equilibrium level, while the other firm continued to produce its Cournot Nash equilibrium output.

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Definitions:

Allergies

Immunological responses to substances (allergens) that are typically harmless to most people, resulting in symptoms like sneezing, itching, and swelling.

Kwashiorkor

A form of protein–energy malnutrition in which the body may break down its own reserves of protein, resulting in enlargement of the stomach, swollen feet, and other symptoms.

PEM

Protein-Energy Malnutrition, a nutritional deficiency disorder caused by a lack of dietary protein and energy.

Malnourished

Suffering from malnutrition due to not getting enough food or not getting the right sort of food.