Which of the Following Is True of the Cournot Model

question 31

Multiple Choice

Which of the following is true of the Cournot model of a duopoly?

• A) The products sold by the firm are imperfect substitutes.
• B) The equilibrium price in a Cournot duopoly is higher than the price in a monopoly.
• C) The demand curve facing each firm is horizontal.
• D) The market price is determined by the output produced by the firm with the larger market share.
• E) The duopoly equilibrium lies between the pure-monopoly and purely competitive outcomes.

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Definitions:

Reticular Activating System

A network of nerves in the brainstem that plays a key role in regulating wakefulness, attention, and sleep-wake transitions.

Temperament

A person's or animal's nature, especially as it permanently affects their behavior.

Characteristic Adaptation

Characteristic Adaptation involves personality adjustments and strategies developed in response to the environment and experiences, shaping individual behavior and thoughts.

Basic Tendency

An inherent inclination or natural disposition of humans and animals towards certain behaviors or actions.