Which of the following is not an assumption of the Cournot model presented in the text?
A. Both firms maximize profits.
B. If the first firm cuts price, the second firm will follow and if the first raises price, the second will not follow.
C. There are two firms in an industry.
D. Each firm takes the output of the other firm as given.
Answer: B
Economics
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The relationship between the unemployment rate and the natural unemployment rate is that the unemployment rate
A) fluctuates about the natural rate. B) equals the natural rate. C) is always below the natural rate. D) is always above the natural rate.
Economics
Give an example of a cyclically unemployed person
What will be an ideal response?
Economics