If firms in a duopoly make price and output decisions on the assumption that their rivals will produce a particular quantity, this is called the

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The Cournot model is characterized by firms in a duopoly deciding their output levels on the assumption that their competitor will produce a certain quantity. This model focuses on quantity competition where each firm chooses its production level based on the expected output of the other.

If Firms in a Duopoly Make Price and Output Decisions