In the general version of the Cournot model, the Nash equilibrium
A)is Pareto optimal
B)produces too little output to maximize profits
C)maximizes the profits of the first mover
D)fails to maximize joint profits

Question

Quizplus · Accepted Answer

The Nash equilibrium in the general Cournot model fails to maximize joint profits, as each firm is only taking into account its own profits and not considering the impact of their actions on their competitor. As a result, the market as a whole produces less output and earns less profit than it would under perfect competition.

In the General Version of the Cournot Model, the Nash