In the Cournot Model of Oligopoly

question 20

Multiple Choice

In the Cournot model of oligopoly,:

• A)each firm chooses simultaneously and non-cooperatively how much to produce to maximize its own profit.
• B)each firm chooses simultaneously and non-cooperatively its own product's price to maximize its own profit.
• C)one firm acts as a quantity leader, choosing its quantity first, while all other firms act as followers, choosing their quantities second and in reaction to the first.
• D)each firm makes its profit-maximizing decision while considering the entire market demand, the same as a monopolist.