Which of the following assumptions were made by the Cournot model ...

[newyorker26]

Which of the following assumptions were made by the Cournot model of oligopoly?
 a. Each seller psychoanalyzes the competition and decides how to react in all possible situations.
  b. Each seller psychoanalyzes the competition and exactly predicts the output decisions of the competitors.
  c. Each seller chooses its own output and believes the others in the market will respond to its choices.
  d. Each seller chooses its own output and believes the others in the market will not respond to its choices.

Question 2

If toothpaste manufacturers compete in a monopolistically competitive market, then:
 a. firms are price takers.
 b. firms try to differentiate their products from those of competitors.
 c. firms maximize profits by choosing output where price equals marginal cost.
  d. there are significant barriers to entering the toothpaste industry.

[leahm14]

Answer to Question 1

D

Answer to Question 2

b

[newyorker26]

Wow, this really help

[amit]

Thanks for the timely response, appreciate it