Solved: Which are the assumptions behind the cournot, Microeconomics

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Which are the assumptions behind the cournot

1. A popular model to analyze duopolies with is the Cournot model.

a) Which are the assumptions behind the Cournot model?

b) In Figure E.8.1 we have drawn the reaction functions for two firms, and labeled them r1 and r2. Which is the Nash equilibrium and why?

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Microeconomics: Which are the assumptions behind the cournot

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Microeconomics: Which are the assumptions behind the cournot

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