The Cournot model is attractive for all of the following reasons except:
A)quantity per firm and price are constant for all markets with two or more firms.
B)it applies to all possible market structures.
C)quantity per firm increases and price decreases with the number of firms.
D)the monopoly and perfect competition models are special cases.

Question

Quizplus · Accepted Answer

The Cournot model does not imply that quantity per firm and price are constant for all markets with two or more firms. Instead, it suggests that as the number of firms increases, the quantity per firm may decrease, and the price may decrease, but not necessarily remain constant.

The Cournot Model Is Attractive for All of the Following