The Oligopoly Model in Which Each Firm Assumes That Rivals

question 8

Multiple Choice

The oligopoly model in which each firm assumes that rivals will continue to produce at their current output levels is called the:

• A)Cournot model
• B)Bertrand model
• C)Stackelberg model
• D)Chamberlin model

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Definitions:

Law of Effect

A psychological principle stating that behaviors followed by satisfying consequences tend to be repeated, while those followed by unpleasant consequences are less likely to be repeated.

Cognitive Model

A theoretical approach that explains psychological phenomena by emphasizing mental processes, including perception, memory, and thought.

Counterconditioning

A behavior therapy technique used to replace an undesirable response to a stimulus with a more desirable one.

Shaping

A method in behavioral psychology used to gradually train a new behavior by reinforcing successive approximations to the desired behavior.