If firms compete in a Cournot fashion, then each firm views the
A)output of the rival as given.
B)prices of rivals as given.
C)profits of rivals as given.
D)all of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

In a Cournot competition, each firm assumes that the output of its rival remains constant and determines its own output level accordingly. Therefore, the output of the rival is viewed as given. The prices and profits of rivals are not given but are impacted by the output decisions of each firm.

If Firms Compete in a Cournot Fashion, Then Each Firm