In the simplest version of the Cournot model, we assume the firms

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Quizplus · Accepted Answer

In the simplest version of the Cournot model, firms are assumed to have identical costs. This assumption is necessary for the model to work, as it allows for a straightforward determination of the firms' quantities and profits based on their respective outputs. If firms have different costs, the interaction becomes more complicated and a different model may be necessary. Therefore, choice C is the best answer.

In the Simplest Version of the Cournot Model, We Assume