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

Question

Quizplus · Accepted Answer

This is the definition of the Cournot model, where firms compete on output rather than price, assuming each firm's output affects the market price.

In the ________, Each Firm Treats the Output of Its