Suppose Cournot Duopolists Firms (A and B) Face the Same

question 98

Multiple Choice

Suppose Cournot duopolists firms (A and B) face the same market demand curve, and initially have identical costs. Firm A figures out a way of reducing its marginal cost. At the new Nash-Cournot equilibrium,

• A) firm A's price falls.
• B) firm A's output expands and firm B's output contracts.
• C) firm B's profits expand.
• D) the price charged by both firms increases.

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Definitions:

Nominal Group Technique

A structured method for group brainstorming that encourages contributions from everyone in the group and seeks to achieve consensus.

Delphi Technique

A method for gathering expert opinions and achieving consensus through a series of structured questionnaires, often used in forecasting and decision-making.

Specific Performance Objectives

Explicitly stated targets or goals that are intended to be achieved within a certain timeframe, often used to measure work performance.

Task Performance

Consists of the quantity and quality of work produced.