Quantity setting oligopolists Flashcards
1
Q
What was Cournot’s assumption?
A
Firms choose how much output to produce
2
Q
What was Bertrand’s assumption?
A
Oligopolists use their price as the strategic variable in some markets
3
Q
What are assumptions of oligopolies
A
- Sellers are price makers
- Entry is blocked
4
Q
What is the market structure of Oligopolies?
A
- A few, large sellers
- High barriers to entry
- Undifferentiated and differentiated products
5
Q
What are Cournots oligopoly assumptions?
A
- Two firms in the
- Market entry is blocked
- Firms produced homogenous products
6
Q
When is there a cournot nash equilibrium?
A
When no firms wants to change its output level
7
Q
Where is the price for a quantity setting oligopolist?
A
Above marginal cost
