Question: In a Cournot market where all firms sell an identical good and have identical production technologies with constant marginal costs then introducing an additional firm

In a Cournot market where all firms sell an identical good and have identical production technologies with constant marginal costs then introducing an additional firm will lead to a higher quantity produced in the market. Discuss?

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In a Cournot market each firm chooses its level of production based on the output of its rivals assuming that the rivals outputs are fixed The firms p... View full answer

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