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.
Correct Answer:
Verified
Correct Answer:
Verified
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