QUESTION 6 Which one of the following statements is NOT applicable to the Cournot model? A) Industry profits in the Cournot model will be less than under a monopoly or a cartel. B) Profits in the Cournot model will be higher than under perfect competition. C) Nash equilibrium occurs where the outputs chosen by each firm are consistent with each other. D) Firms choose price and output in response to output set by rivals. E) Firms will only be able to make normal profits in the short-run equilibrium.

QUESTION 6 Which one of the following statements is NOT applicable to the Cournot model? A) Industry profits in the Cournot model will be less than under a monopoly or a cartel. B) Profits in the Cournot model will be higher than under perfect competition. C) Nash equilibrium occurs where the outputs chosen by each firm are consistent with each other. D) Firms choose price and output in response to output set by rivals. E) Firms will only be able to make normal profits in the short-run equilibrium.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter15: Imperfect Competition

Section: Chapter Questions

Problem 15.4P

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