Which of the Following Assumptions Were Made by the Cournot

question 25

Multiple Choice

Which of the following assumptions were made by the Cournot model of oligopoly?

• A)Each seller psychoanalyzes the competition and decides how to react in all possible situations.
• B)Each seller psychoanalyzes the competition and exactly predicts the output decisions of the competitors.
• C)Each seller chooses its own output and believes the others in the market will respond to its choices.
• D)Each seller chooses its own output and believes the others in the market will not respond to its choices.

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