Question

1.Both firms in a Cournot duopoly would enjoy lower profits if:

Multiple Choice
one firm reduced output below the Cournot Nash equilibrium level, while the other firm continued to produce its Cournot Nash equilibrium output.
None of the answers is correct.
each firm simultaneously increased output above the Nash equilibrium level.
the firms simultaneously reduced output below the Nash equilibrium level.

2.Both firms in a Cournot duopoly would enjoy higher profits if:

Multiple Choice
the firms simultaneously reduced output below the Nash equilibrium level and one firm reduced output below the Cournot Nash equilibrium level, while the other firm continued to produce its Cournot Nash equilibrium output.
one firm reduced output below the Cournot Nash equilibrium level, while the other firm continued to produce its Cournot Nash equilibrium output.
the firms simultaneously reduced output below the Nash equilibrium level.
each firm simultaneously increased output above the Nash equilibrium level.

Answer 1