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Marvy Samir
on Oct 25, 2024

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In the ________, each firm treats the output of its competitor as fixed and then decides how much to produce.

A) Cournot model
B) model of monopolistic competition
C) Stackelberg model
D) kinked-demand model
E) none of the above

Cournot Model

Oligopoly model in which firms produce a homogeneous good, each firm treats the output of its competitors as fixed, and all firms decide simultaneously how much to produce.

Output

Represents the quantity of goods or services produced within a given period by a firm, industry, or economy.

Competitor

An entity operating in the same industry or market as another, offering similar products or services.

  • Comprehend the strategic considerations present in various market structures, such as monopolistic competition and oligopoly.
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Reginald LazarreOct 29, 2024
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