QUESTION 2 If firms are in Cournot equilibrium: each firm could increase profits by unilaterally increasing output. each firm could increase profits by unilaterally decreasing output. firms could increase profits by jointly increasing output. firms could increase profits by jointly reducing output.
QUESTION 2 If firms are in Cournot equilibrium: each firm could increase profits by unilaterally increasing output. each firm could increase profits by unilaterally decreasing output. firms could increase profits by jointly increasing output. firms could increase profits by jointly reducing output.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question number #2
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![The Bertrand model of oligopoly reveals that:
capacity constraints are not important in determining market performance.
perfectly competitive prices can arise in markets with only a few firms.
changes in marginal cost do not affect prices.
All of the statements associated with this question are true.
QUESTION 2
If firms are in Cournot equilibrium:
each firm could increase profits by unilaterally increasing output.
each firm could increase profits by unilaterally decreasing output.
firms could increase profits by jointly increasing output.
firms could increase profits by jointly reducing output.
OOO](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd88ec8d8-79cd-4de3-899b-59b8c44c6ac2%2F59ecf7d1-9cb5-430e-8b99-e7ab0434e015%2F2jiz15p_processed.png&w=3840&q=75)
Transcribed Image Text:The Bertrand model of oligopoly reveals that:
capacity constraints are not important in determining market performance.
perfectly competitive prices can arise in markets with only a few firms.
changes in marginal cost do not affect prices.
All of the statements associated with this question are true.
QUESTION 2
If firms are in Cournot equilibrium:
each firm could increase profits by unilaterally increasing output.
each firm could increase profits by unilaterally decreasing output.
firms could increase profits by jointly increasing output.
firms could increase profits by jointly reducing output.
OOO
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