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.

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Definitions:

Narrow Sense Heritability

A measure of how much of the variance in a trait among individuals in a population is due to additive genetic factors.

Neck Length

A physical trait referring to the distance from the base of an animal's skull to its shoulders, significant in studies of natural selection and adaptation.

Evolutionary Change

A change in the genetic composition of a population over successive generations, leading to the development of new species or variation within species.

Adaptive Evolution

The process through which populations become better suited to their environment through changes in genetic traits over generations.