In the Cournot model the final level of output is ________ the output that would be produced if the industry was a monopoly, and is ________ the output that would be produced if the industry was perfectly competitive.
A) greater than; less than
B) less than; greater than
C) equal to; less than
D) greater than; equal to

Question

Quizplus · Accepted Answer

In the Cournot model, firms choose quantities simultaneously, leading to a level of output that is greater than what would be produced under monopoly (where a single firm restricts output to raise prices) but less than what would be produced in perfect competition (where many firms produce until price equals marginal cost).

In the Cournot Model the Final Level of Output Is