The Cournot model of oligopoly tends to assume that rival firms produce a similar product and compete to maximize profits by deciding how much to produce.
What is cournot model ?
- The Cournot model of oligopoly assumes that rival firms produce a similar product and compete to maximize profits by deciding how much to produce. All firms select output (quantity) at the same time. The basic Cournot assumption is that each firm chooses its quantity, taking the quantity of its competitors as given.
- Cournot duopoly, also known as Cournot competition, is an imperfect competition model in which two firms with identical cost functions compete in a static setting with homogeneous products.
- The Cournot model is simpler than the Oligopoly model, but they share the same foundations, so businesses are interdependent.
- In a cournot model, the firms compete for output. There is more than one firm in this type of market condition, and all firms in a market produce homogeneous products rather than differentiated products.
To learn more about Cournot model refer to :
https://brainly.com/question/13136010
#SPJ4
