Which of the following statements about the classic Cournot duopoly model is incorrect? 1)The products of the two firms are homogeneous. 2) It is a static game with complete information. 3) The two firms decide on their prices and let their quantities be dictated demand conditions. 4) There exist examples that have unique Nash equilibrium points.
Which of the following statements about the classic Cournot duopoly model is incorrect? 1)The products of the two firms are homogeneous. 2) It is a static game with complete information. 3) The two firms decide on their prices and let their quantities be dictated demand conditions. 4) There exist examples that have unique Nash equilibrium points.
Chapter15: Oligopoly And Strategic Behavior
Section: Chapter Questions
Problem 2P
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Which of the following statements about the classic Cournot duopoly model is incorrect?
1)The products of the two firms are homogeneous. |
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2) It is a static game with complete information. |
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3) The two firms decide on their prices and let their quantities be dictated demand conditions. |
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4) There exist examples that have unique Nash equilibrium points. |
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