CFA Practice Question

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CFA Practice Question

In (a) ______, firms' decisions (i.e., price-quantity choices) are their best responses, given what their rivals are doing.

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.
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