In a Cournot equilibrium, each firm chooses an output level that
a. maximizes joint profits.
b. maximizes the price received.
c. maximizes profits given what the other firm produces.
d. maximizes revenue given what the other firm produces.
c
You might also like to view...
Tying is always profitable for a monopoly
a. True b. False Indicate whether the statement is true or false
Suppose there are a large number of men who used to work or seek work who now no longer do either. Other things the same, this makes
a. the number of people unemployed rise but does not change the labor force. b. the number of people unemployed rise but makes the labor force fall. c. both the number of people unemployed and the labor force fall. d. the number of people unemployed fall but does not change the labor force.
A government currently uses price controls to hold down the price of zinc, an exhaustible resource. If price controls are removed,
A. production of zinc will probably fall. B. zinc mines with high marginal cost of production will probably stop producing. C. consumers of zinc will probably want substitutes for zinc. D. income will probably be redistributed from zinc producers to zinc consumers.
The use of seat belts and other automobile safety features making bicycling more hazardous can be explained by the economic concept known as:
A. the real-nominal principle. B. the marginal principle. C. the principle of voluntary exchange. D. the principle of diminishing returns.