Which of the following statements is correct? The Cournot model is a game involv
ID: 1121859 • Letter: W
Question
Which of the following statements is correct?
The Cournot model is a game involving two identical firms, producing identical products at a constant marginal (and average) cost, and, simultaneously, choosing quantities.
It does not matter which player is picked for first and second mover in a simultaneous game.
A Nash equilibrium occurs when each firm chooses a strategy and neither firm can benefit by changing its strategy given the strategy selected by the other player.
All of the above.
a.The Cournot model is a game involving two identical firms, producing identical products at a constant marginal (and average) cost, and, simultaneously, choosing quantities.
b.It does not matter which player is picked for first and second mover in a simultaneous game.
c.A Nash equilibrium occurs when each firm chooses a strategy and neither firm can benefit by changing its strategy given the strategy selected by the other player.
d.All of the above.
Explanation / Answer
the correct statement here is C
A Nash equilibrium is an action profile a with the property that no player i can do better by choosing an action different from ai , given that every other player j adheres to aj .
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