In the Cournot model of oligopoly,firms produce

Question

Quizplus · Accepted Answer

In the Cournot model, firms choose their output level simultaneously, taking the other firms' output as given. They maximize their profit based on this assumption. As a result of this, the total output of the industry in the Cournot equilibrium is less than the competitive output and more than the monopoly output. Therefore, the correct choice is C, which states that firms produce more than the monopoly quantity, but less than the competitive quantity.

In the Cournot Model of Oligopoly,firms Produce