Which of the Following Is NOT an Assumption of the Cournot

question 3

Multiple Choice

Which of the following is NOT an assumption of the Cournot model presented in the text?

• A) There are two firms in an industry.
• B) Each firm takes the output of the other firm as given.
• C) Both firms maximize profits.
• D) If the first firm cuts price, the second firm will follow and if the first raises price, the second will not follow.

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