The Cournot theory of oligopoly assumes rivals will:
A) keep their output constant.
B) increase their output whenever a firm increases its output.
C) decrease output whenever a firm increases its output.
D) follow the learning curve.

Question

Quizplus · Accepted Answer

The Cournot theory of oligopoly assumes that each rival firm will keep its output constant and independent of the output of its competitors. Therefore, option A is the best choice.

The Cournot Theory of Oligopoly Assumes Rivals Will