Question

. What happens in a Cournot duopoly model, having identical firms, if the govern-
ment imposes a per-unit tax on output?​

Answer 1

Answer:

Explanation:

The Cournot model of oligopoly assumes that rival firms produce a homogenous product, and each attempts to maximize profits by choosing how much to produce. All firms choose output (quantity) simultaneously. ... The resulting equilibrium is a Nash equilibrium in quantities, called a Cournot (Nash) equilibrium.