{"id":124398,"date":"2022-01-26T10:49:35","date_gmt":"2022-01-26T10:49:35","guid":{"rendered":"https:\/\/essayparlour.com\/custom-essays\/?p=124398"},"modified":"2022-01-26T10:49:35","modified_gmt":"2022-01-26T10:49:35","slug":"when-competition-between-firms-is-based-on-quantities-cournot-competition","status":"publish","type":"post","link":"https:\/\/essayparlour.com\/custom-essays\/business-economics-2\/when-competition-between-firms-is-based-on-quantities-cournot-competition\/","title":{"rendered":"When competition between firms is based on quantities (Cournot competition),"},"content":{"rendered":"<table style = 'table-striped table-bordered table-hover' responsive='true'>\n<tr>\n<th>Question<\/th>\n<\/tr>\n<tr>\n<td>When competition between firms is based on quantities (Cournot competition), the reaction functions we derive tell us that when Firm A increases its output, Firm B&#8217;s best response is to cut its own. However, when competition between firms is based on price (Bertrand competition), reaction functions tell us that Firm B&#8217;s response to a cut in Firm A&#8217;s price (which will lead to an increase in the quantity A sells) should be a corresponding cut in B&#8217;s price (and a corresponding increase in its own output). Reconcile these two results.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Question<\/p>\n<p>\nWhen competition between firms is based on quantities (Cournot competition), the reaction functions we derive tell us that when Firm A increases its output, Firm B&#8217;s best response is to cut its own. However, when competition between firms is based <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43],"tags":[],"class_list":["post-124398","post","type-post","status-publish","format-standard","hentry","category-business-economics-2"],"_links":{"self":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/124398","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/comments?post=124398"}],"version-history":[{"count":1,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/124398\/revisions"}],"predecessor-version":[{"id":124399,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/124398\/revisions\/124399"}],"wp:attachment":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/media?parent=124398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/categories?post=124398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/tags?post=124398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}