In the Cournot model, a firm maximizes profit by selecting

A) its output, assuming that other firms keep their output constant.
B) its price, assuming that other firms keep their price constant.
C) its output, assuming that other firms will retaliate.
D) its price, assuming that other firms will retaliate.

A

Economics

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A tax of $5 per airplane ticket is _____

a. a unit tax b. an ad valorem tax c. an income tax d. a value-added tax

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To gain from price discrimination, price searchers

a. must charge a higher price to those with a more inelastic demand. b. must be pure monopolists. c. must have small economies of scale d. must have access to widely available natural resources.

Economics