In the Cournot model,each firm assumes that its rival will ____ its output when the firm adjusts its own output.Which word best completes the sentence?
A)increase
B)not change
C)decrease
D)adjust

Question

Quizplus · Accepted Answer

In the Cournot model, each firm assumes that its rival will keep its output unchanged (not change) when the firm adjusts its own output. This assumption is central to the Cournot competition model, where firms choose quantities simultaneously and independently.

In the Cournot Model,each Firm Assumes That Its Rival Will