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.
Chapter10: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 20SQ
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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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