Which one of the following statements about Cournot oligopoly model with N firms is incorrect? 1)The result with unspecifed N firms can be applied to N=1. 2)If N>1 and there exists a unique Nash equilibrium, then the market price cannot depend on N. 3)If the model is symmetric and there exists a unique Nash equilibrium and N approaches infinity, then the market price approaches to the marginal cost, i.e., the perfectly competitive price. 4)The result with unspecified N firms can be applied to N approaching infinity.
Q1) Which one of the following statements about Cournot oligopoly model with N firms is incorrect?
1)The result with unspecifed N firms can be applied to N=1.
2)If N>1 and there exists a unique Nash equilibrium, then the market price cannot depend on N.
3)If the model is symmetric and there exists a unique Nash equilibrium and N approaches infinity, then the market price approaches to the marginal cost, i.e., the
4)The result with unspecified N firms can be applied to N approaching infinity.
Q2) Which of the following statements about the classic Cournot duopoly model is incorrect?
1)The products of the two firms are homogeneous.
2)It is a static game with complete information.
3)The two firms decide on their prices and let their quantities be dictated demand conditions.
4)There exist examples that have unique Nash equilibrium points.
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