According to the oligopoly Cournot model, competing businesses all manufacture a same good and aim to maximize profits by deciding how much to create.
What are the Cournot model's underlying tenets and how do they stack up against those of the Bertrand model?
The implicit assumption in the Cournot and Bertrand models, which results in the Bertrand model's need that each business create realized production and the Cournot model's requirement that each firm sell all output, is one way to look at the models.
What presumption does Cournot use to explain the duology model?
We presum that the goods that the businesses manufacture are uniform. The two businesses will choose to set their quantities concurrently. Each company will first think about what its rival would perform before setting its own output to optimize profits.
To know more about oligopoly Cournot model visit:-
https://brainly.com/question/28341589
#SPJ4
