- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 1. The Firm and Market Structures
- Subject 8. Oligopoly
CFA Practice Question
In (a) ______, firms' decisions (i.e., price-quantity choices) are their best responses, given what their rivals are doing.
B. Cournot model
C. Nash equilibrium
A. pricing interdependence
B. Cournot model
C. Nash equilibrium
Correct Answer: C
User Contributed Comments 4
| User | Comment |
|---|---|
| jejasin | Kind of tricky...doesn't Cournot also look at what competitors are doing? |
| schweitzdm | Cournot seems to primarily consider expectations of other firms rather than what they are in fact doing. Please correct me if I'm wrong. |
| choas69 | Cournet only looks at output i guess. |
| khalifa92 | hello choas69, this is you from the future. |