If a Cournot duopolist announced that it will double its output, the o
If a Cournot duopolist announced that it will double its output, the other firm does not view the announcement as credible because
A) the announcing firm’s profits will fall if it carries out the threat.
B) the other firm’s profits will fall if the announcing firm carries out the threat.
C) the other firm’s profits will rise if the announcing firm carries out the threat.
D) the other firm will double output also.
ANSWER
A
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