Both Firms in a Cournot Duopoly Would Enjoy Lower Profits

question 91

Multiple Choice

Both firms in a Cournot duopoly would enjoy lower profits if:

• A) the firms simultaneously reduced output below the Nash equilibrium level.
• 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) None of the preceding answers is correct.

---

Definitions:

Evaporation

The process by which a liquid turns into vapor, typically under the effect of heat.

Nitrogenase

The enzyme responsible for nitrogen fixation under anaerobic conditions.

Nitrogen Fixation

The chemical process by which atmospheric nitrogen is assimilated into organic compounds, especially by certain microorganisms as part of the nitrogen cycle.

Self-Designation

The process by which individuals label or identify themselves with specific traits, roles, or identities.