Answer to Question #173090 in Microeconomics for nvs

Question

cournot model

Answer 1

Solution:

Cournot model is an economic model of imperfect competition in which competing firms with similar cost functions compete with homogeneous products in a static setting. Competing firms will select to produce a product independently and simultaneously while attempting to maximize profits by choosing how much to produce. All firms select output or quantity simultaneously. The basic Cournot model assumption is that firms produce identical or standardized goods and that they can collude or form a cartel.