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In a Cournot oligopoly, a decrease in a firm's marginal cost leads to
a. Reduced output and a higher market price
b. Reduced output and a lower market price
c. Higher output and a higher market price
d. Higher output and a lower market price
When two firms compete as a Cournot duopoly, the resulting market price is ______________ the price a monopolist with the same market demand and (greater than, smaller than, the same as) costs would choose.
When two firms competing in duopoly decide to collude, the resulting market price is _____________ the price a monopolist with the same market demand and (greater than, smaller than, the same as) costs would choose.
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