Augustin Cournot showed (in 1838) that each of a small number of quant

Augustin Cournot showed (in 1838) that each of a small number of quantity-setting firms in a homogeneous-product market will sense the influence of the individual firm’s own output on market price, and will offer less than the competitive quantity

as a result. Indicate whether the statement is true or false

ANSWER

T When there are only a few firms, each firm will supply a small enough quantity to the market that it will be able to see how its own quantity will affect market price.