Suppose Cournot duopolists firms face the same market demand curve, but have differing costs. At the Nash-Cournot equilibrium, the firm with the lower cost will
A) have a lower price for its product than its competitor.
B) produce a smaller output than its competitor.
C) have a higher price for its product than its competitor.
D) produce a larger output than its competitor.
D
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If the economy is experiencing high rates of inflation due to a new housing bubble, what effects would expansionary monetary policy have on the economy?
A) It would reduce inflation as well as unemployment. B) It would raise inflation as well as unemployment. C) It would reduce inflation but cause unemployment to rise. D) It would raise inflation but would cause unemployment to fall.
In the ________, two duopolists compete by simultaneously selecting price
A) Cournot model B) Nash model C) Bertrand model D) kinked-demand model E) none of the above