A model in which firm 1 and firm 2 choose a quantity simultaneously and, after both firms have chosen their outputs, the price of the good on the market and the profits of both firms are determined is called a

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Quizplus · Accepted Answer

The Cournot model is the only one of the three options presented that involves firms choosing quantities simultaneously. The other two models involve firms choosing prices (Bertrand) or one firm making a quantity decision before the other (Stackelberg).

A Model in Which Firm 1 and Firm 2 Choose