Answer to Question #158971 in Microeconomics for Philip

Question

Cournot competitors

Answer 1

Solution:

Cournot competition is an economic model in which competing firms select a quantity to produce independently and simultaneously. It assumes that rival firms produce a homogenous product, and each attempts to maximize profits by selecting how much to produce. The Cournot competitors produce identical or standardized goods and it is assumed they cannot collude or form a cartel.