If a Cournot Duopolist Announced That It Will Double Its

question 53

Multiple Choice

If a Cournot duopolist announced that it will double its output,

• A) it becomes the leader.
• B) the other firm does not view the announcement as credible.
• C) the other firm will shut down.
• D) the other firm will double output also.

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Definitions:

Counterconditioning

In classical conditioning, the process of pairing a conditioned stimulus with a stimulus that elicits a response that is incompatible with an unwanted conditioned response.

Lithium Carbonate

A chemical compound used as a mood stabilizer in the treatment of bipolar disorder and other psychiatric conditions.

Mania

A mental health condition characterized by periods of great excitement, euphoria, delusions, and overactivity.

Starving

The physical condition resulting from a severe lack of essential nutrients over a prolonged period.