1. Firms 1 and 2 compete in a Cournot duopoly. If firm 2 adopts a strategy that raises firm 1's marginal cost, Multiple Choice a)firm 1 will reduce its output. b)firm 2 will gain market share. c)firm 2 will enjoy higher profits. d)firm 1 will reduce its output and firm 2 will gain market share and enjoy higher profits..
Economics
1. Firms 1 and 2 compete in a Cournot duopoly. If firm 2 adopts a strategy that raises firm 1's marginal cost,
Multiple Choice
a)firm 1 will reduce its output.
b)firm 2 will gain market share.
c)firm 2 will enjoy higher profits.
d)firm 1 will reduce its output and firm 2 will gain market share and enjoy higher profits..
2. Firms 1 and 2 compete in a Cournot duopoly. If firm 2 adopts a strategy that raises firm 1's marginal cost,
Multiple Choice
a)firm 1 will increase its output.
b)firm 2 will lose market share.
c)firm 1 will enjoy higher profits.
d)firm 1 will not increase its output nor enjoy higher profits nor will firm 2 lose market share.
**Yes, these are two different questions. Please answer asap. Thank you!**
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