Both firms in a Cournot duopoly would enjoy higher profits if: each firm simultaneously increased output above the Nash equilibrium level. the firms simultaneously reduced output below the Nash equilibrium level. each firm simultaneously increased prices above the Nash equilibrium level.

Both firms in a Cournot duopoly would enjoy higher profits if: each firm simultaneously increased output above the Nash equilibrium level. the firms simultaneously reduced output below the Nash equilibrium level. each firm simultaneously increased prices above the Nash equilibrium level.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter10: Monopolistic Competition And Oligoply

Section: Chapter Questions

Problem 20SQ

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Question

Both firms in a Cournot duopoly would enjoy higher profits if:

		each firm simultaneously increased output above the Nash equilibrium level.
		the firms simultaneously reduced output below the Nash equilibrium level.
		each firm simultaneously increased prices above the Nash equilibrium level.
		one firm reduced output below the Cournot Nash equilibrium level, while the other firm continued to produce its Cournot Nash equilibrium output.

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