This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: An essential assumption of the Cournot model is that each firm aims to maximize profits, based on ... (Read 97 times)

evelyn o bentley

  • Hero Member
  • *****
  • Posts: 564
on: Jun 29, 2018
An essential assumption of the Cournot model is that each firm aims to maximize profits, based on the expectation that its own output decision will not have an effect on the decisions of its rivals. Critically evaluate this assumption.
 
  What will be an ideal response?

Question 2

Refer to Table 1-6. What is Ivan's marginal cost if he decides to stay open for six hours instead of five hours?
 
  A) 10 B) 20 C) 25 D) 91.67


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ky860224

  • Sr. Member
  • ****
  • Posts: 350
Reply #1 on: Jun 29, 2018
Answer to Question 1

The assumption is a problem on two fronts. First, no firm can reasonably be expected to know what the amount of output that a rival firm is going to produce in advance without some kind of collusion. Second the assumption that the firm's own output will not have an effect on the decision of its rivals appears nave.

Answer to Question 2

C


evelyn o bentley

  • Member
  • Posts: 564
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

ttt030911

  • Member
  • Posts: 315
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

This chart illustrates the four quadrants in which we can place the relationships between the state This chart illustrates the four quadrants in which we can place the relationships between the state
The operon model, as proposed in 1961 by Jacob and Monod The operon model, as proposed in 1961 by Jacob and Monod
Model of cI repressor binding to DNA Model of cI repressor binding to DNA
Model of an Etruscan Temple Model of an Etruscan Temple
Model look has gone from curvy to stick thin to sporty and back to waiflike again Model look has gone from curvy to stick thin to sporty and back to waiflike again
Model of GAL1 and GAL10 transcriptional activation Model of GAL1 and GAL10 transcriptional activation
Video: Polymerase chain reaction PCR - Animation

For a complete list of videos, visit our video library