Multiple Choice
Suppose that there are four identical firms in an industry. The Cournot model predicts that the output of each firm will be:
A) Equal to one-fourth the output of the remaining firms in the industry.
B) Equal to one-third the output of all the remaining firms in the industry.
C) Exactly equal to the output of the each of the remaining firms in the industry.
D) Answers b and c are correct.
E) Cannot be determined from the information provided.
Correct Answer:
Verified
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