In the Cournot Model, When a New Firm Begins Production

question 171

Multiple Choice

In the Cournot model, when a new firm begins production it assumes its demand curve is

• A) the market demand less the amount the other firm is selling.
• B) the market demand plus the amount the other firm is selling.
• C) the same as the competing firm's demand curve.
• D) one-half of the competing firm's demand curve.

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