In the Cournot Model,if the Products Are Differentiated

question 27

Multiple Choice

In the Cournot model,if the products are differentiated,

• A) this reduces the pressure of one firm's decisions on the other.
• B) this increases the pressure of one firm's decisions on the other.
• C) there is no difference between this model and one with homogeneous goods.
• D) marginal costs are necessarily different.

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Definitions:

Tokonoma

A shallow alcove in a Japanese room, which is used for decoration, such as a painting or stylized flower arrangement.

Alcove

A recessed section of a room or garden, often used for seating or display of items.

Nezumi

Japanese, “mouse-gray” (ceramics).

Engawa

A traditional Japanese architectural feature that serves as an intermediary space or veranda between the indoors and the outdoors.