Identify the Truthfulness of the Following Statements

question 18

Multiple Choice

Identify the truthfulness of the following statements.
I. As the number of firms in an industry exhibiting Cournot competition increases, the greater the Cournot equilibrium diverges from the collusive outcome.
II. As the number of firms in an industry exhibiting Cournot competition increases, the market price increases.

• A) Both I and II are true.
• B) Both I and II are false.
• C) I is true; II is false.
• D) I is false; II is true.

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Definitions:

Pupils

The opening in the center of the iris of the eye, which regulates the amount of light that enters the eye.

Rods

Rod-shaped photoreceptors that are sensitive only to the intensity of light.

Feature Detectors

Neurons in the sensory cortex that fire in response to specific features of sensory information such as lines or edges of objects.

Neurons

Specialized cells in the nervous system that transmit information through electrical and chemical signals.