Question

_______Indicate whether each statement below is true or false, and justify your answer

____The Cournot oligopoly model is not useful for analysing competitionamong firms because (i) firms normally choose prices, not quantities, and (ii) firmsnormally do not make their decisions simultaneously

Answer 1

These type of firm have control over market and thus they are main decision makers of quantities supply and thus market force are not given that much importance like fully competition market.

False . . In such type of imperfect competition firms normally choose quantity over Prices as they are competing on the amount of output or product(homogenous ) and quantities which they are producing decided by them simultaneously.so demand is main deciding factor of the Prices .

False. . Firms make decisions at the same time and independently about quantities of homogenous products they are producing.