Relative to the Case in Which Two Identical Firms Choose

question 3

Multiple Choice

Relative to the case in which two identical firms choose quantities simultaneously in a Cournot model,if one of the two moves first and is observed by the other,how would this affect its output?

• A)it would increase its output,more so if it could deter the other from entering the market at all.
• B)it would increase its output,but would moderate this increase if it were concerned about entry deterrence.
• C)it would decrease its output if it couldn't deter entry and increase it otherwise.
• D)it would decrease its output whether or not it wanted to deter entry.

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Definitions:

Generalized Expectancies

A psychological concept referring to an individual's belief or expectation that their behavior can lead to certain outcomes, regardless of the specific situation.

Locus of Control

An individual’s belief about the extent to which their actions influence the outcomes or events in their lives.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from traumatic events or persistent failure to succeed.

External Locus of Control

The belief that one's life events are largely influenced by external forces or other people, rather than one's own efforts.