Firms 1 and 2 Compete in a Cournot Duopoly

question 68

Multiple Choice

Firms 1 and 2 compete in a Cournot duopoly.If firm 2 adopts a strategy that raises firm 1's marginal cost:

• A) firm 1's reaction function will shift up.
• B) firm 2's reaction function will shift up.
• C) firm 2's reaction function will shift down.
• D) firm 1's reaction function will shift down.

---

Definitions:

Survey

A research method involving the collection of data from a predefined group of respondents to gather information and insights on various topics through questionnaires or interviews.

Smokers

Individuals who inhale the smoke of burning tobacco products, such as cigarettes, cigars, or pipes, often habitually.

Violent Behavior

Refers to actions involving physical force intended to hurt, damage, or kill someone or something.

Variables

Two or more phenomena that a researcher believes are related; these will be examined in the experiment.