1. In a Cournot duopoly with homogenous firm and down sloping market demand,
A The firm that sets the higher quanity will capture all of the market
B The Nash equilibrium is the competitive outcome
C Both firms set price above marginal cost
D All of the above
2. In a Bertrand duopoly with homogenous firm and down sloping market demand,
A The firm that sets the lower price will capture all of the market
B The Nash equilibrium is the competitive outcome
C Both firms set price equal to marginal cost
D All of the above