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Basic Question 14 of 17
In (a) ______, firms' decisions (i.e., price-quantity choices) are their best responses, given what their rivals are doing.
B. Cournot model
C. Nash equilibrium
A. pricing interdependence
B. Cournot model
C. Nash equilibrium
User Contributed Comments 4
| User | Comment |
|---|---|
| jejasin | Kind of tricky...doesn't Cournot also look at what competitors are doing? |
| schweitzdm | Cournot seems to primarily consider expectations of other firms rather than what they are in fact doing. Please correct me if I'm wrong. |
| choas69 | Cournet only looks at output i guess. |
| khalifa92 | hello choas69, this is you from the future. |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
explain supply and demand relationships under oligopoly, including the optimal price and output for firms as well as pricing strategy
CFA® 2024 Level I Curriculum, Volume 1, Module 1.