Asked by
Marvy Samir
on Oct 25, 2024Verified
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.
Verified Answer
RL
Learning Objectives
- Comprehend the strategic considerations present in various market structures, such as monopolistic competition and oligopoly.