According to the Cournot model, if a firm bases its price and output decisions on the assumption that its rival will produce a particular output, industry price and profit will be lower than if the industry were under monopoly.

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In the Cournot model, firms decide on their output levels assuming their rivals' outputs are fixed, leading to a competitive outcome where industry price and profit are lower than in a monopoly, where a single firm controls the entire market output and sets higher prices.

According to the Cournot Model, If a Firm Bases Its